Quality companies with high growth can deliver outsized returns

Note: This is historical data & is given for illustration only. No returns are being indicated. The fund manager may or may not invest in the said stocks. Past

performance may or may not be sustained in future.

Earnings growth is for the period FY 2004 to FY 2014

Source of data: Bloomberg, IIFL Research

Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of illustration only 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. Investors are requested to consult their financial,

tax and other advisors before taking any investment decision(s).

Earnings Growth Share Performance

Asian Paints Ltd. 21.5% 37.1%

Kotak Mahindra Bank Ltd. 30.6% 36.4%

Lupin Ltd. 35.2% 35.5%

Sun Pharmaceutical Industries Ltd. 23.0% 32.0%

Axis Bank Ltd. 33.9% 29.8%

Divi's Laboratories Ltd. 28.2% 28.9%

Nestle India Ltd. 16.1% 27.0%

Bosch Ltd. 9.0% 26.1%

Cummins India Ltd. 15.9% 25.9%

Colgate-Palmolive India Ltd. 16.9% 25.8%

performers of BSE 100 over 10 years

Relative Positioning A

ctive

Re

turn

s

Active Risk

Large cap

diversified funds

Index

funds

Axis Focused

25 Fund

Mid cap

funds

Sector

Funds

Axis Focused 25 Fund: Positioning

Active high conviction

investing strategy

Concentrated focus on

sustainable businesses

Pure bottom-up, best-ideas

approach with high active

allocation relative to the

benchmark

Risk management embedded

in the investment process

1

2

3

4

Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets

Can participate in opportunities across the spectrum

Source: Capital line *Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the

fund manager’s view of the equity markets. The range of capitalization is an average of the last 4 quarters and is monitored on quarterly basis

S&P BSE 500 Index ( 500 stocks – Market Cap in INR crores)

Largest Market Cap Smallest Market Cap

319

200th Stock

6,752 18,664 2,113

Large Cap Mid Cap

Aims to primarily invest upto 90% of its equity allocation in

the top 200 stocks by market capitalization*

501,508

Invests in up to 25 companies where the fund manager has high conviction

Follows a high conviction strategy

Focus on upto 25 best ideas with high

conviction while remaining diversified

o Currently, out of the 25 stocks, 14 are

outside benchmark

Top 5 stocks outside benchmark Weight

Gruh Finance Limited 4.7%

Dish T V India Limited 4.6%

Jubilant Foodworks Limited 4.5%

Page Industries Limited 4.0%

Bajaj Finance Limited 3.6%

Sector Fund Wt Index Wt Overweight

Capital Goods, Eng 14.5% 5.4% 9.1%

Media & Publishing 8.1% 0.8% 7.4%

Autos & Logistics 13.1% 9.1% 4.0%

Cement & Building 5.0% 2.8% 2.2%

Consumer 10.7% 10.0% 0.7%

Focus on picking business cycles which forms

the key to performance

o The overweight sectors over benchmark

are:

Provides a sustainable long term strategy

* Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity

markets. 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. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Portfolio positioned to capture the growth revival

Source of Data: Barclays; ICOR = Incremental Capital Output Ratio

India’s Capital efficiency trend

3.8 3.9

5.2

3.4

5.3

6.8

Average 4.7

2

3

4

5

6

7

8

9

10

FY93-96 FY97-00 FY01-04 FY05-08 FY09-12 FY13-14

ICOR Average GDP Growth(%)

Investment rate

30 32 34

ICOR

3.5 8.6 9.1 9.7

4.0 7.5 8.0 8.5

4.5 6.7 7.1 7.6

5.0 6.0 6.4 6.8

5.5 5.5 5.8 6.2

Projected ICOR

• Investment Rate is the total investment made as a % of GDP

• ICOR = (Investment Rate)/(GDP growth %)

• Current ICOR is at 20 year high of 6.8. Higher ICOR indicates lower efficiency.

• With the policy reforms and suitable investment environment, investment rates are expected to increase

leading to higher growth rate

Increase in capital efficiency will lead to a GDP growth

revival with increasing investment rate

When capital efficiency decreases,

GDP growth also decreases

* Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity

markets. 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. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Risk parameters (3 years) Top 5 sector holdings

Top 10 stocks Current market cap split (% NAV)

Portfolio & Risk Parameters (Oct’15)

Std Dev (%) 14.9

Std Dev of Benchmark (%) 15.7

Tracking Error 5.6

Information Ratio 0.85

Beta 0.88

Consistent Performer

NAV Movement

Performance – 30th Sep 2015

Axis Focused 25 Fund - Growth Option

Cumulative Performance Value of investment of Rs 10000 @

Date Period NAV /

Unit (Rs) Scheme

Retuns %^ Benchmark Returns %*

Additional Benchmark

Returns# (%) Scheme (Rs)

Benchmark (Rs)

Additional Benchmark

Returns # (Rs)

Sep 30, 2014 Last 1 Year 15.3900 12.74% -0.20% 3.08% 11,274 9,980 10,308

Sep 28, 2012 Last 3 Years 10.9900 16.41% 11.68% 13.23% 15,787 13,937 14,526

Jun 29, 2012 Since Inception 10.0000 18.45% 13.40% 14.81% 17,350 15,058 15,678

^Past performance may or may not be sustained in future. Returns greater than 1 year period are compounded annualized (CAGR)* Benchmark: Nifty

50. # Additional Benchmark: S&P BSE 200. Inception Date: Jun 29, 2012

Axis Focused 25 Fund – Growth

(Inception: 29th June 2012)

SIP Investments Since Inception SIP 3 Year SIP 2 Year SIP

Total Amount Invested (Rs) 390,000 360,000 120,000

Market value as on September 30, 2015 (Rs) 516,316 464,760 119,906

Returns (Annualised) 17.57% 17.34% -0.15%

Benchmark Returns (Annualised) 11.01% 10.42% -9.94%

Additional Benchmark Returns (Annualised) 13.42% 13.03% -7.29%

Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV.

Annexure

Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. # Scheme Performance may not be strictly

comparable with that of its additional benchmark in view of hybrid nature of the scheme. The above data excludes performance of all the schemes

which have not completed a year.

Statutory Details and Risk Factors

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. Investors are requested to consult their financial, tax and other advisors

before taking any investment decision(s).

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.

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

carefully.

Data updated as on 30th Oct 2015