1

Source: World Bank. Data as on 31st Dec 2018

Domestic mutual fund’s universe as a % of available opportunities

2

41%

United States 11%

CHINA 8%

3%

INDIA

Japan

3%

Germany 3%

FRANCE

2% South

Africa Domestic MF investors are not

exposed to 97% of the world

COUNTRY MARKET CAP AS A % OF WORLD MARKET CAP

Investors’ Home Bias

3

Global diversification can bring stability to the portfolios

Investing only in one market raises the risk levels

Investment in home

market**

Country’s market

cap as a % of World

market cap^

US 79.1% 41%

Canada 59.0% 3%

Australia 66.5% 2%

Japan 55.2% 8%

India 99.8%* 3%

^Source: World Bank. Data as on 31st Dec 2018, **Source: Vanguard Report : ‘The global case for strategic asset allocation and an examination of home bias’ published in Feb 2017. *AUM of Domestic Equity MFs as a % of Total Equity MF AUM of the mutual fund industry. Source: MFI Explorer. Above stocks may or may not be a part of portfolio. Fund manager will take the final call based on the views on markets.

3 global companies put together

exceeds India’s total market cap

0.0

0.5

1.0

1.5

2.0

2.5

3.0

India Apple + Microsoft + Amazon

Mark

et

Cap

($tn

)

Source: Bloomberg Returns in USD. Past performance may or may not be sustained in future.

Global diversification creates opportunity

4

Different markets perform at different times

Calendar Year MSCI China Index MSCI Europe Index MSCI India Index MSCI Japan Index MSCI US Index

CY 2008 -52% -48% -65% -31% -39%

CY 2009 59% 31% 100% 5% 24%

CY 2010 2% 1% 19% 13% 13%

CY 2011 -21% -15% -38% -18% 0%

CY 2012 19% 17% 23% 8% 13%

CY 2013 0% 22% -5% 24% 30%

CY 2014 5% -9% 22% -5% 11%

CY 2015 -10% -5% -7% 7% -1%

CY 2016 -1% -3% -3% 1% 9%

CY 2017 51% 22% 37% 22% 20%

CY 2018 -21% -17% -9% -15% -6%

… with low correlations amongst each other

5

Above data is based on daily return over last 10 years. Data as on Dec 2018. Past performance may or may not be sustained in future.

MSCI China Index MSCI Europe Index MSCI India Index MSCI Japan Index MSCI US Index

MSCI China Index NA 0.44 0.53 0.44 0.29

MSCI Europe Index 0.44 NA 0.48 0.23 0.61

MSCI India Index 0.53 0.48 NA 0.21 0.36

MSCI Japan Index 0.44 0.23 0.21 NA 0.01

MSCI US Index 0.29 0.61 0.36 0.01 NA

GLOBAL events DOMESTIC events

Global allocations help better withstand event shocks

6

Source: Bloomberg Returns in USD. Past performance may or may not be sustained in future.

SCENARIO MSCI WORLD

INDEX MSCI INDIA

INDEX

CY 1998 Sanctions imposed

on India post

nuclear tests

22.8% -22.9%

CY 2013 Taper tantrum 24.1% -5.3%

CY 2016 Demonetisation &

growth concerns 5.3% -2.9%

Combined observation indicate need for global diversification

SCENARIO MSCI WORLD

INDEX

MSCI INDIA

INDEX

CY 2000 Dot com bubble -14.0% -22.8%

CY 2008 Subprime mortgage

crisis -42.1% -65.0%

CY 2011

US credit rating

downgrade, European

sovereign debt crisis

-8.0% -37.5%

Global exposure can bring down risk of the overall portfolio

7

Source: Bloomberg, Returns are in INR. Data as on 31st Mar 2019. Past performance may or may not be sustained in future. Risk is depicted by Standard Deviation for daily returns over last 10 years. Minimum 1 year return in the last 10 years (daily basis) is used to show the downside risk of each of the portfolios.

Return (CAGR)

(10 year)

Risk (Std Dev)

(10 year)

Minimum

1 year return

Domestic Portfolio (Nifty 50 Index) 14.4% 17.9% -24.2%

Global Portfolio (MSCI World Index) 13.0% 14.1% -8.6%

70 Domestic + 30 Global 14.5% 13.9% -17.6%

Opportunity to invest in unexplored themes and bluest of the blue chips

8

Alphabet $869bn

(USA)

Alibaba $481bn

(China)

Adobe $133bn

(USA)

JP Morgan Chase $369bn

(USA)

Nestle $296bn

(Switzerland)

Source: Bloomberg. Data as on 31st Mar 2019. Above stocks may or may not be a part of portfolio. Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the markets.

Visa $352bn

(USA)

Comcast $190bn

(USA)

Amazon $929bn

(USA)

Portfolio Positioning

1 Domestic equities : Diversified multicap portfolio

2 Overseas equities : Invest directly in overseas stocks in

compact large cap portfolio (Investment Advisor:

Schroders Investment Management Ltd)

9

Please refer to the Scheme Information document of the document for detailed asset allocation and investment strategy. Axis AMC may appoint investment advisors for overseas investments. Currently, Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

Foreign securities:

Up to 35%

(predominantly

large caps)

Domestic midcaps –

Typically 35-40%

Domestic large caps -

Typically 30-35%

Total large caps:

35-65%

Total mid caps:

35-65%

AXIS

APPROACH

Axis is a bottom-up investor that focuses on

fundamental research driven investing

Our philosophy is focused on identifying quality

companies that have a sustainable medium to

long term growth potential run by capable

managements

AMELIA PEARCY

Designer

EQUITY KEY PILLARS OF OUR INVESTMENT

APPROACH

Growth

biased –

focusing on

sustainable

growth

Look for

quality

businesses

Aim to

deliver

superior risk

adjusted

returns

High

conviction

investors

10

Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

How do we manage overseas allocation?

11

Overseas investments is advised by

Schroders Investment Management Ltd.

GLOBAL ADVICE

Aligned with domestic investment

philosophy of quality high growth

stories

PHILOSOPHY Transaction executed through

key intermediaries

(broking/custody) in US and

other major markets

EXECUTION

Invest directly in overseas

securities

INVESTMENT

Schroders’ approach to stock picking

12

The "company earnings" line in the graph represents Schroders forecast (as opposed to the consensus estimates). The opinions statedinthis presentation include some forecasted views. Schroders believe that they are basing their expectations and beliefs on reasonable assumptions within the bounds of what they currently know. However, there is no guarantee that any forecasts or opinions will be realised. For illustrative purposes only. Past Performance is not a guide to future performance and may not be repeated. Currently, Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

Focus on un-anticipated growth

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Consensus EstimatesCompany Fundamentals

FY1 FY2 FY3 FY4 FY5

Company Earnings Consensus Estimates

Consensus often fails to anticipate inflection Markets often fail to look far enough ahead

– Cyclical

– Transitional growth

– Turnarounds / Restructuring

– Structural

– Sustainable Competitive Advantage

– Innovation

Positive

Growth

Gap

Year

Opportunistic Growth Core Growth

Positive

Growth

Gap

Seek to exploit market

inefficiencies

The Growth Gap

Disciplined investment in stocks

which deliver positive earnings

surprise

Sector % of Global Equity

Exposure

Information Technology 18.6%

Finance 18.5%

Consumer 15.4%

Healthcare 15.2%

Capital Goods, Engig & Construction 10.8%

Autos & Logistics 10.6%

Agro Inputs & Chemical 4.2%

Oil & Gas 4.1%

Telecom 2.5%

Current portfolio statistics on overseas investments

13

Investment Focus

Sector allocation

Market Cap

100% of the global exposure is in companies

with >$5bn market cap)

Country exposure

High conviction ideas where

• Current price doesn’t reflect future prospects

• Expected to deliver future earnings growth above

consensus over 3-5-year horizon.

• Also looks at material environmental, social and

governance (ESG) factors

• Currently we have 30 foreign stocks

Country % of Global Equity

Exposure

US 91%

Switzerland 6%

France 3%

Data as on 30th Apr 2019. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

Portfolio Update – 31st May 2019

14

Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

Top 10 Domestic Equities % of NAV

Info Edge (India) Limited 7.0%

Tata Consultancy Services Limited 5.4%

Kotak Mahindra Bank Limited 5.2%

Housing Development Finance

Corporation Limited 4.9%

Cummins India Limited 4.2%

HDFC Bank Limited 4.0%

Torrent Power Limited 4.0%

PI Industries Limited 3.3%

Bandhan Bank Limited 3.3%

Quess Corp Limited 3.1%

Top 10 International Equities % of NAV

ERSTE GROUP BANK AG-SPON

ADR 0.5%

NOVARTIS AG-SPONSORED

ADR 1.6%

Nestle SA 1.6%

BANK OF AMERICA CORP 1.5%

JP Morgan Chase & Co 1.4%

Nutrien Limited 1.0%

TOTAL SA-SPON ADR 1.0%

ROCKWELL AUTOMATION INC 1.0%

Alphabet Inc A 1.0%

Visa Inc 0.9%

Case Studies

15

Source: Bloomberg. Company, Data as on 31st Mar 2019. Above stocks may or may not be a part of portfolio. Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the markets. Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

Rockwell Automation Nestle Alibaba

• World's largest retailer and e-commerce

company

• One of the largest Internet and AI

companies

• Alibaba’s number of mobile monthly active

users is 666 million (double the entire U.S.

population)

• ‘11.11 Global Shopping Festival’ 2017 :

Record of $25bn revenue in a single day

Market Cap: $480bn*

• World's largest food and beverage

company

• Over 150 years of existence

• Ranked #64 on Fortune Global 500 in

2017

• Ranked #33 on Forbes Global 2000 list of

largest public companies - 2016.

Market Cap: $297bn*

• World’s largest company dedicated to

industrial automation and information

• Over 115 years of existence

• Employs approximately 22,000 people

serving customers in more than 80

countries

• A Fortune 500 Company

Market Cap: $23bn*

Features at a glance

16

Fund

manager

Investment

Horizon

Benchmark Min.

Application

amount

Category

Large & Midcap

Fund

Jinesh Gopani

Hitesh Das

(Foreign Securities)

5+years S&P BSE 200 Rs 5,000 and in

multiples of Re. 1/-

thereafter

Product Label, Disclaimer, Statutory Details and Risk Factors

17

Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC)

Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Scheme specific risk factors: Apart from the risks associated with domestic investments, the scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Axis AMC has an arrangement with Schroders Investment Management Limited to seek investment advice for investment in foreign securities. Foreign security may be $ denominated or in any other foreign currency.

The material should not be construed as issued by Government of India or any of its authority.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

This product is suitable for investors who are seeking*:

• capital appreciation over long term

• investment in a diversified portfolio predominantly consisting of equity and equity related instruments both

in India as well as overseas

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Mutual Fund investments are subject to market risks, read

all scheme related documents carefully

Thank You