Annual Report - 2017-2018 - Mutual Funds Online | Axis MF · We have pleasure in presenting the Ninth Annual Report of the schemes of Axis Mutual Fund for the period ended March 31,

Annual Report - 2017-2018

TRUSTEE REPORTREPORT FROM AXIS MUTUAL FUND TRUSTEE LIMITED TO THE UNIT HOLDERS OF THE SCHEMES OF AXIS MUTUAL FUND

We have pleasure in presenting the Ninth Annual Report of the schemes of Axis Mutual Fund for the period ended March 31, 2018.

The assets under management of the schemes of Axis Mutual Fund as at March 31, 2018 were Rs. 66,998.40 crores and the average assets under management during the said period were Rs. 72,270.25 crores. The total number of investors’ folio count under the schemes of Axis Mutual Fund as at March 31, 2018 were 27,23,311.

As of March 31, 2018, Axis Asset Management Company Ltd. managed 52 schemes of Axis Mutual Fund which includes:

• 1 open ended equity linked savings scheme with 3 year lock-in (ELSS); • 8 open ended equity schemes; • 6 close ended equity scheme; • 1 open ended liquid scheme; • 1 open ended gilt scheme; • 10 open ended debt schemes; • 1 open ended Gold Exchange Traded Fund; • 1 open ended Index Exchange Traded Fund; • 1 open ended fund of fund scheme; • 1 capital protection scheme; • 4 close ended debt schemes. • 18 close ended Hybrid scheme;

1. SCHEME PERFORMANCE, FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES

A. Scheme Performance

The Assets Under Management (“AUM”), the Net Asset Value (“NAV”) per unit and the performance of the schemes vis-à-vis their benchmark for period(s) ended March 31, 2018 are given in Annexure - 1.

Brief Comments on Scheme performance:

Related to scheme performance comparison, SEBI has enforced the benchmarking of schemes to the total return (TRI) variants of the respective benchmarks. TRI indices factors in the dividends and interest payments which otherwise are not considered in PRI variant of the indices. This change was made effective 1st Feb 2018.

Axis Long Term Equity Fund : Axis Long Term Equity Fund has outperformed its benchmark since inception and also during the last financial year. The Scheme investments were driven by fundamental research looking for long term secular growth prospects and stock selection was on a bottom’s up basis. The scheme looks for sustainable business models with good management, market leadership and scalability in business model. Risk assessment is an integral part of selection of a company as part of the portfolio.

Axis Bluechip Fund*: Axis Bluechip Fund has outperformed its benchmark since inception and also during the last financial year. The Schemes’ investments were driven by fundamental research approach and stock selection was on a bottom’s up basis. The scheme has an actively managed portfolio of companies with strong and sustainable growth, with a bias for large caps while risk being a key variable.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Bluechip Fund from Axis Equity Fund. Performance is as on 31st Mar 2018.

Axis Midcap Fund: The scheme has outperformed its benchmark since inception and also during the last financial year. Mid cap stocks out-performed largecaps during the year. The investment approach was driven on fundamental research process. The portfolio targets to invest in high quality business with scalable and sustainable models with the underlying philosophy, “Today’s Midcap, Tomorrow’s leader”.

Axis Focused 25 Fund: Axis Focused 25 Fund has outperformed its benchmark since inception as well as during the last financial year. The scheme has an actively managed portfolio and invests in upto 25 stocks, primarily out of the top 200 by market capitalization in the Indian market. The scheme uses a fundamental research process to identify and invest in companies with high quality sustainable models over the medium to long term.

Axis Multicap Fund: This scheme was launched in this financial year. The scheme looks to invest in companies that are at their inflection points such as market share gain, industry consolidation, sunrise industries, improved management focus and capital allocation or regulatory & policy changes. The scheme looks for such opportunities across market cap range. The scheme stands fully deployed as on 31st March 2018.

Axis Dynamic Equity Fund : The scheme was launched in this financial year. The scheme aims to have a dynamic equity allocation based on an in-house built quantitative model. The model uses a 3-pillar approach that considers the valuation, trend and risk of the market. The model helps the scheme in arriving at the dynamic allocation on a non-subjective basis. While this approach is likely to lag the equity market during a sharp rally, it should allow the scheme to reduce drawdowns during periods of turmoil and thus can help deliver reasonable equity exposure with sharply lower risk over a cycle. The Scheme stands fully deployed as at 31st March 2018.

Axis Arbitrage Fund*: The Direct Plan of the scheme outperformed its benchmark over the last financial year. The performances of other plan of the scheme are different to the extent of difference in their total expense ratio.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Arbitrage Fund from Axis Enhanced Arbitrage Fund. Performance is as on 31st Mar 2018.

Axis Equity Saver Fund: The Scheme has outperformed its benchmark in the last financial year although underperformed the benchmark since inception period. The performance of the scheme was affected by the correction in equity markets after the launch of the scheme. The scheme seeks to provide capital appreciation and income distribution by using equity and equity related instruments, arbitrage opportunities and debt and money market instruments.

Axis Small Cap Fund: Axis Small Cap Fund has outperformed its benchmark since inception

as well as during the last financial year. The investment approach was driven on a fundamental research process to identify and invest in companies with high quality sustainable models over the medium to long term.

Axis Emerging Opportunities Fund - Series 1 & 2: The scheme looks to invest in companies that are expected to see a boost in growth over the medium term and/or which are taking advantage of ongoing market dislocations. Direct plan of series 1 & 2 outperformed the benchmark in the last financial year. Performances of other plans of the schemes are different to the extent of the difference in expense ratios.

Axis Equity Advantage Fund – Series 1 & 2: The scheme was launched in this financial year. The scheme looks to invest in a diversified portfolio of equity & equity related instruments. It also aims to manage risk through use of active hedging techniques. Both the series stand fully deployed as on 31st March 2018.

Axis Capital Builder Fund - Series 1: This scheme was launched in this financial year. The scheme aims to generate income and long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments across market capitalization. The Scheme may also use derivative strategies to manage volatility dynamically.

Axis Liquid Fund : During the year, interest rates rose primarily due to fiscal & inflation worries. The direct plan of the scheme outperformed its benchmark in the last financial year. The scheme has maintained its portfolio strategy of low volatility and high quality during the course of the year. Performances of the plans of the scheme are different to the extent of the difference in expense ratios.

Axis Gilt Fund*: The objective of scheme was to deliver returns consistent with returns on 10-year government securities. The scheme had performed in line with the objectives. As the scheme is largely passively managed, comparison with benchmark is not relevant.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Gilt Fund from Axis Constant Maturity 10 Year Fund along with the change in objective of the scheme. Performance is as on 31st Mar 2018.

Axis Treasury Advantage Fund: During the year, interest rates rose primarily due to fiscal & inflation worries. The Direct plan of the scheme outperformed its benchmark in the last financial year as well as since inception. Performances of other plans of the scheme are different to the extent of the difference in expense ratios.

Axis Short Term Fund: During the year, interest rates went up primarily due to fiscal and inflation worries; other reasons being rising global bond yields, rising crude prices, etc. The scheme maintains a high quality portfolio that is focused on highly rated issuers. The Direct Plan of the scheme outperformed its benchmark during the year. Performances of the plans of the scheme are different to the extent of the difference in expense ratios.

Axis Dynamic Bond Fund: During the year, interest rates went up primarily due to fiscal and inflation worries; other reasons being rising global bond yields, rising crude prices, etc. The direct plan of the scheme outperformed its benchmark since inception of the scheme although underperformed the benchmark in this financial year. Performances of the other plan is different to the extent of the difference in expense ratios.

Axis Strategic Bond Fund*: During the year, interest rates went up primarily due to fiscal and inflation worries; other reasons being rising global bond yields, rising crude prices, etc. Last year witnessed improved corporate profitability which supported the credit environment and made the corporate spreads attractive. The scheme maintained a lower average duration with increased exposure to corporate bond sector to take advantage of this environment. The scheme outperformed its benchmark during the year and since inception. Performances of the plans of the schemes are different to the extent of the difference in expense ratios.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Strategic Bond Fund from Axis Regular Savings Fund. Performance is as on 31st Mar 2018.

Axis Banking & PSU Debt Fund: The scheme is invested in debt and money market instruments issued by banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). As such it maintains a high quality and low duration relative to its benchmark. The Direct plan of the scheme has outperformed the benchmark in the last year as well as since inception. Performances of other plan of the scheme is different to the extent of the difference in expense ratios.

Axis Credit Risk Fund: The scheme invests in a mix of government and corporate bonds while maintaining a short duration profile. During the year, interest rates went up primarily due to fiscal and inflation worries; other reasons being rising global bond yields, rising crude prices, etc. Last year witnessed improved corporate profitability which supported the credit environment and made the corporate spreads attractive. The scheme maintained a lower average duration with increased exposure to corporate bond sector to take advantage of this environment. The scheme outperformed its benchmark during the year and since inception. Performances of the plans of the schemes are different to the extent of the difference in expense ratios.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Credit Risk Fund from Axis Fixed Income Opportunities Fund. Performance is as on 31st Mar 2018.

Axis Regular Saver Fund*: The scheme invests largely in short term debt and a mix of large and mid-cap equities. The scheme maintained relatively stable maturity profile and dynamically adjusted its equity allocation using the asset allocation model to ensure that it met its drawdown objectives. The scheme outperformed the benchmark in the last financial year. The Direct Plan of the scheme outperformed its benchmark since inception. Performances of the plans of the schemes are different to the extent of the difference in expense ratios.


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*Note: Effective from 18th May 2018, the scheme name changed to Axis Regular Saver Fund from Axis Income Saver. Performance is as on 31st Mar 2018.

Axis Corporate Debt Fund*: The scheme was launched in this financial year. The scheme seeks to provide steady income and capital appreciation by investing primarily in corporate debt instruments. With improved credit environment, the scheme endeavors to capture corporate spreads in the short term space while being cautious at managing risk on its corporate investments.

*Note: Effective from 18th May 2018, the scheme name changed to Axis Corporate Debt Fund from Axis Corporate Debt Opportunities Fund. Performance is as on 31st Mar 2018.

Axis Triple Advantage Fund: The scheme invests across three asset classes, viz. debt, equity and gold. While equity and gold performed well, due to rise in yields in fixed income market in the last year, debt component didn’t fare as good as other two asset classes. The fund has outperformed the benchmark in the last financial year, which again brought out the importance of asset allocation that is provided by this scheme. Performance of the plans of the scheme is different to the extent of the difference in expense ratios.

Axis Children’s Gift Fund: The scheme has outperformed its benchmark in the last one year. The scheme is an open-ended balanced scheme that seeks to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity related instruments.

Axis Capital Protection Oriented Fund - Series 5: This scheme was rolled over in Financial Year 2016-17 and the corpus of the scheme was invested in line with its investment objectives. The scheme is passively managed and performance comparison with benchmark is not appropriate in these cases.

Axis Gold ETF: The scheme aims to deliver returns consistent with returns on gold and is invested largely in gold. The scheme has underperformed the domestic price of gold. As the scheme is largely passively managed, comparison with benchmark is not relevant.

Axis Nifty ETF: The scheme was launched in this financial year. This is an exchange traded fund that aims to provide returns before expenses that closely correspond to the total returns of the Nifty 50 Index subject to tracking errors.

Axis Gold Fund: The scheme aims to deliver returns consistent with returns on gold by investing in Axis Gold ETF. The scheme has performed in line with the objectives. As the scheme is largely passively managed, comparison with benchmark is not relevant.

Axis Fixed Term Plan - Series 49, 52, 64, 74: The various series were invested in line with their investment objectives. The schemes are passively managed and performance comparison with benchmark is not appropriate in these cases.

Axis Hybrid Fund - Series 5,6,7,18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30,31,32, 33, 35 : The various series were invested in line with their investment objectives. The schemes are passively managed and performance comparison with benchmark is not appropriate in these cases.

B. Operations of the Schemes

Axis Mutual Fund (‘Axis MF’) has been focused on taking big strides on digital front. We continued on a strong growth trajectory and achieved a new peak AUM this year. Following major initiatives were executed:

Website: Complete revamp of Mutual Fund website www.axismf.com, which has new age and user friendly design. Web portal is made responsive and user can access both from desktop and mobile. Few new features like quick investment, systematic plan, notification tab, customizing folio etc. are added. Dashboard and Portfolio views gives the customers an overview of their investments.

MF Pulse: A knowledge-sharing mobile application is developed for internal stakeholders with the intention of making information available on-the-go. The application is pre-loaded with information pertaining to various schemes of mutual fund industry. It has fund tools like sales pitch, portfolio, performance, leaflets, FAQs, SIP & SWP calculators for all Axis MF schemes.

Insta Empanelment: Axis AMC has come out with an innovative solution on IFA empanelment. The empanelment process is reengineered and the distributor empanelment can be done in a few clicks through digital channels. It has got a very good response from IFA communities with more than 6000 IFA got empanelled through this.

Tax Invest Portal: A dedicated portal for investment in Axis MF's ELSS (Axis Long Term Equity Fund). This microsite aims at providing the investor with a clean interface, a rich user experience and helps complete the investment in a matter of minutes. This portal is also customizable for IFAs who can then share the customized links with their respective investors for generating investments

C. Future Outlook

Summary and Background : The economy has bottomed over the last 2-3 years and growth seems to be reviving and should continue to steadily improve. However the revival has not been uniformly witnessed across different sub-components leading to what may be called a 2-speed economy. Consumer demand is on track to improve, which, along with better export, is likely to support manufacturing and services; strong global demand should help.

Some of the key developments for the Indian economy last year were:

• Moody’s upgraded India’s sovereign rating after 14 years to Baa2 with a stable economic outlook

• This year’s budget was announced with key focus on uplifting the rural economy and strengthening of the agriculture sector, healthcare for the economically less privileged, infrastructure creation and improvement in the quality of education of the country.

• The country’s revenue receipts are likely to rise owing to government’s measures to strengthen infrastructure and reforms like demonetisation and Goods and Services Tax (GST).

• Indian Corporate sector have started showing signs of stability, attributable to declining negative impact of the GST and improved growth prospects.

Equity outlook: The government has undertaken a series of policy steps that can improve the growth environment in the medium term. The recent budget announcements relating to rural, agriculture and healthcare are positive for growth in general and for the specific sectors of the economy. Rural consumption story is expected to play out over the next few quarters. Rural centric policies are likely to be undertaken in the run up to the 2019 general elections, which bodes well for rural spending for the next few quarters.

Looking ahead into 2018-19, the corporate earnings growth trend seems to be positive in direction; key reasons being recovery in consumption-oriented sectors; steady asset quality improvement; lowering slippages in private banks and infrastructure push by the government. The quality of earnings is also improving led by margin expansion in some sectors.

India is emerging as a fastest growing economy on the back of government policy reforms, growing demand, increased capital spending in infrastructure development, increased credit for agriculture and small industries. The economy is well positioned with a solid macro foundation, political stability and positive global focus. This combined with structural reforms is likely to push growth higher in the medium term.

Having said that, we expect elevated volatility levels in the equity markets and believe that equity investments should be looked at from a medium to long term investment horizon.

Debt Market Outlook: This year started with fall in yields in the first quarter on the back of multi year low inflation majorly due to lower food inflation. This was followed by sell off in bond yields for the next three quarters owing to fiscal uncertainties, rising headline inflation, lack of participation from PSU banks, global yields going up, OMO sales and rising crude prices. These led to market participants perceiving rate hikes and increased volatility.

Government and the central bank have been taking measures to ease yields namely; increased FPI limits, reduction in government borrowing in H1, deferment of MTM losses, etc.

Inflation is now bottoming out, there are signs of domestic growth improvement on the back of positive trends on real time indicators which in turn is improving credit environment and improvement in global growth with IMF lifting the global growth forecast to 3.9%.

We believe that growth, which has been suppressed in past year, now is at the cusp of recovery and RBI is likely to support growth as inflation is likely to remain in RBI’s comfort zone. Improving growth prospects has had a positive impact on corporate performance. This has led to improvement in corporate balance sheets. The current corporate bond spreads remain conducive for investors on a risk reward basis. Adding to it, structural liquidity is expected to remain in surplus to neutral zone for next 6-12 months. Direction of CPI in the domestic markets coupled with RBI tone is likely to set the tone for the bond markets. 1-3-year space is likely to offer superior risk adjusted returns.

2. BRIEF BACKGROUND OF SPONSORS, FUND, THE TRUSTEE COMPANY AND AMC

a. Axis Mutual Fund:

Axis Mutual Fund (‘the Mutual Fund’/ ‘the Fund’) was set up as a Trust by the Settlor, Axis Bank Limited (‘Axis Bank’) on June 27, 2009 with Axis Mutual Fund Trustee Limited (‘the Trustee Company’) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated June 27, 2009 with Axis Asset Management Company Limited (‘Axis AMC’/’the AMC’) to function as the Investment Manager for all the schemes of the Fund. The Fund was registered with SEBI on September 4, 2009 vide registration No. MF/061/09/02.

b. Axis Mutual Fund Trustee Limited : The Trustee is the exclusive owner of the Fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Deed of Trust. The Trustee seeks to ensure that the Fund and the schemes floated thereunder are managed by the AMC in accordance with the Deed of Trust, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. The main responsibility of the Trustee is to safeguard the interest of the Unit holders.

c. Sponsor: Axis MF is sponsored by Axis Bank Limited (“Axis Bank”). The Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has entrusted a sum of Rs. 1,00,000/- (Rs. One Lakh only) to Axis Mutual Fund Trustee Limited as the initial contribution towards the corpus of the Fund.

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance

TRUSTEE REPORT (Contd.)


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TRUSTEE REPORT (Contd.)Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

With its 3,703 domestic branches (including extension counters) and 13,814 ATMs across the country as on 31st March 2018, the network of Axis Bank spreads across 2163 cities and towns, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Bank also has ten overseas offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai, Abu Dhabi, Dhaka and Sharjah and an overseas subsidiary at London, UK.

d. Axis Asset Management Company Limited: Axis Asset Management Company Limited (‘Axis AMC’) is a public limited company incorporated under the Companies Act, 1956 on January 13, 2009, having its registered office at Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. Axis AMC has been appointed as the Investment Manager of the Mutual Fund by the Trustee Company vide Investment Management Agreement dated June 27, 2009 and executed between the Trustee Company and the AMC.

Axis Bank Limited holds 75% (less one share) of the total issued and paid up equity share capital of Axis AMC and the balance 25% plus one equity share has been acquired by Schroders Investment Management (Singapore) Limited (SIMSL) through its wholly owned subsidiary, Schroders Singapore Holdings Private Limited (SSHPL), a subsidiary of Schroders PLC. , the ultimate holding company of Schroders Group, is among the 100 largest companies listed on the London Stock Exchange and has a history of over 200 years. Schroders Group is a leading international asset management group managing various asset classes.

Axis AMC has obtained Certificate of Registration as Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993 vide registration no. INP000003534 with effect from January 04, 2010, which was subsequently renewed. There is no conflict of interest between the Mutual Fund and the PMS activity.

Axis AMC has signed an agreement with offshore fund manager(s) to provide Non-binding Advisory and related services in respect of offshore fund(s) investing in India. SEBI has vide its letter dated January 10, 2013, accorded it‘s no objection to the AMC for undertaking non-binding investment advisory and other related services.

The AMC also acts as the Investment Manager to Axis Alternative Investment Fund - Category II (“AIF”), registered as a Category II Alternative Investment Fund with SEBI vide registration no. IN/AIF2/17-18/0512 dated January 19, 2018 under SEBI (Alternative Investment Funds) Regulations, 2012.

3. INVESTMENT OBJECTIVES OF THE SCHEMES

Sr. No. Name of the Scheme Investment Objective

1 Axis Long Term Equity Fund, An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit

To generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

2 Axis Bluechip Fund, An open ended equity scheme predominantly investing in large cap stocks

To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved.

3 Axis Midcap Fund, An open ended equity scheme predominantly investing in mid cap stocks

To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies.

4 Axis Focused 25 Fund, An open ended equity scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies

To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies.

5 Axis Multicap Fund, An open ended equity scheme investing across large cap, mid cap, small cap stocks

To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization.

6 Axis Dynamic Equity Fund, An open ended dynamic asset allocation fund

To generate capital appreciation by investing in a portfolio of equity or equity linked securities while secondary objective is to generate income through investments in debt and money market instruments. It also aims to manage risk through active asset allocation.

7 Axis Arbitrage Fund, An open ended scheme investing in arbitrage opportunities

To generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments.

8 Axis Equity Saver Fund, An open ended scheme investing in equity, arbitrage and debt

To provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments.

9 Axis Small Cap Fund, A 5 year close ended equity scheme) (With an automatic conversion into an open ended equity Scheme on completion of 5 years

To generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies.

10 Axis Emerging Opportunities Fund – Series 1 & 2, A Close Ended Equity Scheme

The scheme aims to generate long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of midcap companies. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.

11 Axis Equity Advantage Fund - Series 1 & 2, A Close Ended Equity Scheme

To generate capital appreciation over medium to long-term from a diversified portfolio of predominantly equity & equity related instruments. It also aims to manage risk through use of active hedging techniques.

12 Axis Capital Builder Fund - Series 1, A close ended equity scheme investing across large cap, mid cap, small cap stocks.

To generate income and long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments across market capitalisation.

13 Axis Liquid Fund, An Open ended Liquid Scheme To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

14 Axis Gilt Fund, An open ended debt scheme investing in government securities across maturity

The Scheme will aim to generate credit risk-free returns through investments in sovereign securities issued by the Central Government and/or State Government.

15 Axis Treasury Advantage Fund, An open ended low duration debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 6 to 12 months

To provide optimal returns and liquidity to the Investors by investing primarily in a mix of money market and short term debt instruments which results in a portfolio having marginally higher maturity as compared to a liquid fund at the same time maintaining a balance between safety and liquidity. However, there can be no assurance that the investment objective of the scheme will be achieved.

16 Axis Short Term Fund, An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years

To generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved.


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TRUSTEE REPORT (Contd.)3. INVESTMENT OBJECTIVES OF THE SCHEMES (CONTD.)

Sr. No. Name of the Scheme Investment Objective

17 Axis Dynamic Bond Fund, An open ended dynamic debt scheme investing across duration

To generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments.

18 Axis Strategic Bond Fund, An open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years to 4 years

To generate optimal returns in the medium term while maintaining liquidity of the portfolio by investing in debt and money market instruments.

19 Axis Banking & PSU Debt Fund, An open ended debt scheme predominantly investing in debt instruments of Banks, Public Sector Undertakings & Public Financial Institutions

To generate stable returns by investing predominantly in debt & money market instruments issued by Banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). The Scheme shall endeavor to generate optimum returns with low credit risk.

20 Axis Credit Risk Fund, An open ended debt scheme predominantly investing in AA and below rated corporate bonds (excluding AA+ rated corporate bonds)

To generate stable returns by investing in debt & money market instruments across the yield curve & credit spectrum. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.

21 Axis Regular Saver Fund, An open ended hybrid scheme investing predominantly in debt instruments

The Scheme seeks to generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity related instruments.

22 Axis Corporate Debt Fund, An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds

The Scheme seeks to provide steady income and capital appreciation by investing in corporate debt.

23 Axis Triple Advantage Fund, An open ended scheme investing in equity, debt and gold

To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments & gold Exchange Traded Funds.

24 Axis Children’s Gift Fund, An open ended fund for investment for children, having a lock-in of 5 years or till the child attains age of majority (whichever is earlier)

To generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity related instruments.

25 Axis Capital Protection Oriented Fund - Series 5, A close ended capital protection oriented fund

To protect the capital by investing in a portfolio of debt & money market instruments that are maturing on or before the maturity of the Scheme. The scheme also aims to provide capital appreciation through exposure in equity & equity related instruments.

26 Axis Gold ETF, An open ended scheme replicating/tracking Domestic Price of Gold

To generate returns that are in line with the performance of gold.

27 Axis Nifty ETF, An open ended Scheme replicating/ tracking Nifty 50 Index

The investment objective of the Scheme is to provide returns before expenses that closely correspond to the total returns of the Nifty 50 Index subject to tracking errors.

28 Axis Gold Fund, An open ended fund of fund scheme investing in Axis Gold ETF

To generate returns that closely correspond to returns generated by Axis Gold ETF.

29 Axis Fixed Term Plan – Series 49, 52, 64, 74, Close ended debt scheme(s)

To generate returns through a portfolio of debt & money market instruments that are maturing on or before the maturity of the respective plan(s).

30 Axis Hybrid Fund - Series 5, 6, 7, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33 and 35, Close ended debt scheme(s)

To generate income by investing in high quality fixed income securities whilst the secondary objective is to generate capital appreciation by investing in equity and equity related instruments.

The name, nature and investment objective of the schemes are as on May 21, 2018. For detailed changes effected in the schemes, investors may refer to notice dated April 13, 2018 & May 9, 2018 available on website www.axismf.com.

4. Significant Accounting Policies

Accounting policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations 1996. Summary of significant account policies is disclosed in Financial Statements of the schemes.

5. Unclaimed Dividends and Redemptions

Summary of no. of investors and corresponding amount as at March 31, 2018:

Name of Scheme Unclaimed Dividend Unclaimed Redemption

Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors

Axis Hybrid Fund - Series 13 (1275 Days) - - 3,85,24,844.79 271



Axis Hybrid Fund - Series 11 (42 Months) - - 1,95,68,948.20 142



Axis Hybrid Fund - Series 7 (1305 Days) - - 96,75,549.34 85

Axis Bluechip Fund 24,26,618.32 520 82,27,166.52 377

Axis Hybrid Fund - Series 5 (1346 Days) - - 75,82,698.75 78

Axis Capital Protection Oriented Fund - Series 5 - - 73,89,048.81 42

Axis Long Term Equity Fund 60,36,042.85 611 61,59,431.17 70

Axis Triple Advantage Fund 2,59,365.57 78 59,19,396.21 115

Axis Hybrid Fund - Series 2 - - 42,96,111.58 39

Axis Fixed Term Plan - Series 47 - - 30,75,641.91 1


Axis Regular Saver Fund 8,48,105.43 168 13,26,641.28 32

Axis Midcap Fund 2,18,096.20 42 12,79,488.64 66


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Note: The Amounts of Unclaimed Dividends and Redemptions which are pending for more than 3 months are considered as unclaimed.

6. REDRESSAL OF COMPLAINTS RECEIVED AGAINST AXIS MUTUAL FUNDS DURING 2017-18

Please refer Annexure - 2 for the details on Redressal of Complaints received against Axis Mutual Fund during the financial year ended March 31, 2018.

7. STATUTORY INFORMATION

a. The Sponsor is not responsible or liable for any loss resulting from the operation of the schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs. 1,00,000/- for setting up the Fund, and such other accretions / additions to the same.

b. The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments.

c. Full Annual Report shall be disclosed on the website (www.axismf.com) and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the Trust Deed, the full Annual Report of the Fund / AMC at a price.

ACKNOWLEDGEMENTS

The Trustee Company thanks the unitholders of the schemes for their overwhelming response and also thanks the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI) and the Association of Mutual Funds in India (AMFI) for the guidance provided by them. The Trustee also appreciates the service provided by the Registrar and Transfer Agent, Fund Accountant, Custodian, Bankers, Distributors and Brokers. The guidance and services provided by the auditors and legal advisors and the sincerity and dedication of the employees of Axis AMC is also appreciated.

For Axis Mutual Fund Trustee Limited

Sd/- Sd/-Director Director

Place: Mumbai

Date: May 21, 2018

Axis Gold Fund - - 10,99,659.10 88

Axis Hybrid Fund - Series 1 - - 9,98,737.04 25

Axis Focused 25 Fund 3,36,840.35 21 8,45,118.52 38



Axis Liquid Fund 1,619.53 1 6,55,711.69 14

Axis Strategic Bond Fund 12,593.27 3 2,68,433.51 4


Axis Treasury Advantage Fund 743.09 1 2,18,791.41 22

Axis Equity Saver Fund 2,49,492.91 66 1,05,387.14 8

Axis Short Term Fund 13,114.74 5 80,702.53 5

Axis Credit Risk Fund 39,010.30 9 70,512.62 5

Axis Fixed Term Plan – Series 59 (391 Days) - - 62,512.60 1

Axis Children's Gift Fund - - 55,156.07 2

Axis Dynamic Bond Fund 8,960.21 6 21,759.90 3

Axis Banking & PSU Debt Fund - - 15,556.25 1

Axis Fixed Term Plan - Series 41 (546 days) - - 6,505.66 1

Axis Multicap Fund - - 5,024.20 1

Axis Gilt Fund 38,592.02 3 - -

Axis Corporate Debt Fund 0.04 1 - -

Axis Arbitrage Fund 17,218.51 12 - -

Axis Small Cap Fund 10,18,791.20 50 - -

Axis Fixed Term Plan – Series 63 (91 Days) 105.61 1 - -

Axis Fixed Term Plan - Series 74 (1105 Days) 935.08 1 - -

1,15,26,245.21 1,599.00 19,94,25,351.23 2,176.00


7


Axis Liquid Fund(G) October 9, 2009 1,920.74 8.00% 7.64% 6.83% 6.84% 7.43% 7.33% 8.12% 8.10%

Benchmark: CRISIL Liquid Fund Index

Axis Liquid Fund-Retail Plan(G) March 1, 2010 1,823.62 7.71% 7.88% 6.22% 6.84% 6.85% 7.33% 7.55% 8.10%


Axis Liquid Fund(G)-Direct Plan December 31, 2012 1,927.53 8.22% 8.09% 6.89% 6.84% 7.50% 7.33% 8.19% 8.10%


Axis Treasury Advantage Fund(G) October 9, 2009 1,937.61 8.11% 7.65% 6.63% 6.79% 7.69% 7.33% 8.24% 8.09%


Axis Treasury Advantage Fund(G)-Direct Plan January 1, 2013 1,982.05 8.73% 8.09% 7.30% 6.79% 8.16% 7.33% 8.72% 8.09%


Axis Treasury Advantage Fund-Retail Plan(G) March 3, 2010 1,813.24 7.64% 7.88% 6.15% 6.79% 7.06% 7.33% 7.54% 8.09%


Axis Long Term Equity Fund(G)-Direct Plan January 1, 2013 42.86 22.32% 13.59% 18.07% 12.49% 10.31% 9.31% 24.71% 15.77%

Benchmark: S&P BSE 200 Index

Axis Long Term Equity Fund(G) December 29, 2009 40.33 18.42% 10.57% 16.79% 12.49% 9.10% 9.31% 23.27% 15.77%

Benchmark: S&P BSE 200 Index

Axis Bluechip Fund(G)-Direct Plan January 1, 2013 26.19 15.74% 12.02% 19.81% 11.76% 9.44% 7.38% 16.61% 13.63%

Benchmark: Nifty 50

Axis Bluechip Fund(G) January 5, 2010 24.70 11.61% 9.54% 18.13% 11.76% 8.21% 7.38% 15.29% 13.63%

Benchmark: Nifty 50

Axis Short Term Fund(G)-Direct Plan January 1, 2013 19.65 8.97% 8.55% 6.74% 6.11% 8.49% 7.90% 8.96% 8.56%

Benchmark: CRISIL Short Term Bond Fund Index

Axis Short Term Fund(G) January 22, 2010 18.86 8.05% 8.07% 6.00% 6.11% 7.68% 7.90% 8.10% 8.56%


Axis Short Term Fund-Retail Plan(G) March 2, 2010 18.64 8.01% 8.15% 6.00% 6.11% 7.68% 7.90% 8.11% 8.56%


Axis Regular Saver Fund (G)-Direct Plan January 4, 2013 19.82 10.46% 9.37% 8.94% 6.21% 8.01% 8.42% 11.06% 9.78%

Benchmark: CRISIL Hybrid 85+15 - Conservative Index

Axis Regular Saver Fund (G) July 16, 2010 18.47 8.28% 8.69% 7.55% 6.21% 6.46% 8.42% 9.52% 9.78%


Axis Dynamic Bond Fund(G)-Direct Plan January 1, 2013 18.67 9.41% 8.57% 4.90% 5.06% 8.35% 8.12% 9.30% 8.60%

Benchmark: CRISIL Composite Bond Fund index

Axis Dynamic Bond Fund(G) April 27, 2011 17.60 8.50% 8.61% 3.99% 5.06% 7.26% 8.12% 8.06% 8.60%


Axis Triple Advantage Fund(G)-Direct Plan January 1, 2013 19.38 8.42% 7.25% 10.74% 7.89% 7.66% 7.35% 9.44% 8.08%

Benchmark: 35% of Nifty 50 Index + 35% of CRISIL Composite Bond Fund Index + 30% of INR Price of Gold

Axis Triple Advantage Fund(G) August 23, 2010 18.34 8.30% 8.47% 9.18% 7.89% 6.47% 7.35% 8.26% 8.08%

Benchmark: 35% of Nifty 50 Index + 35% of CRISIL Composite Bond Fund Index + 30% of INR Price of Gold

Axis Gold ETF November 10, 2010 2,711.82 4.19% 4.36% 5.69% 5.96% 3.28% 4.95% -1.02% -0.43%

Benchmark: Domestic Price of Gold

Axis Midcap Fund(G)-Direct Plan January 1, 2013 35.51 19.96% 17.98% 21.39% 14.31% 11.31% 16.07% 23.75% 22.69%

Benchmark: S&P BSE Midcap Index

Axis Midcap Fund(G) February 18, 2011 33.38 18.48% 14.65% 20.03% 14.31% 10.03% 16.07% 22.27% 22.69%


Axis Gold Fund(G)-Direct Plan January 1, 2013 10.23 -2.13% -1.26% 2.98% 5.96% 3.16% 4.95% -1.53% -0.43%


Axis Gold Fund(G) October 20, 2011 9.63 -0.65% 0.81% 2.13% 5.96% 2.01% 4.95% -2.74% -0.43%


Axis Capital Protection Oriented Fund - SERIES 5 - (G) November 2, 2012 15.01 7.80% 9.61% 6.70% 6.21% 2.75% 8.42% 7.40% 9.78%


Axis Gilt Fund(G)-Direct Plan January 1, 2013 15.46 7.30% 6.56% 3.11% -0.42% 6.97% 6.36% 7.30% 6.42%

Benchmark: CRISIL 10-year Gilt Index

Performance of the Scheme of Axis Mutual Fund for the period ended March 31, 2018 Annexure - 1

Returns Since Inception 1 year Return 3 years Return 5 years ReturnDate of

AllotmentParticulars Scheme Return

(%)

Benchmark Returns

(%)

NAV as on March 31, 2018

(` in)Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Returns to Investors^


8


Axis Gilt Fund(G) January 23, 2012 15.04 6.83% 6.82% 2.57% -0.42% 6.41% 6.36% 6.77% 6.42%

Benchmark: CRISIL 10-year Gilt Index

Axis Strategic Bond Fund(G)-Direct Plan January 7, 2013 17.73 9.83% 8.51% 8.29% 5.06% 9.25% 8.12% 9.88% 8.60%


Axis Strategic Bond Fund(G) March 28, 2012 16.95 9.18% 8.72% 7.58% 5.06% 8.34% 8.12% 8.92% 8.60%


Axis Banking & PSU Debt Fund(G)-Direct Plan January 1, 2013 1,619.79 8.56% 8.55% 7.33% 6.11% 8.05% 7.90% 8.61% 8.56%


Axis Banking & PSU Debt Fund(G) June 8, 2012 1,604.20 8.47% 8.62% 7.11% 6.11% 7.85% 7.90% 8.41% 8.56%


Axis Focused 25 Fund(G)-Direct Plan January 1, 2013 26.78 17.21% 12.02% 20.30% 11.76% 13.33% 7.38% 18.85% 13.63%

Benchmark: Nifty 50

Axis Focused 25 Fund(G) June 29, 2012 25.15 17.40% 13.33% 18.86% 11.76% 11.90% 7.38% 17.38% 13.63%

Benchmark: Nifty 50

Axis Hybrid Fund-5-Regular Plan(G) July 25, 2013 12.85 5.50% 10.48% 3.36% 6.21% 0.00% 8.42% NA NA


Axis Hybrid Fund-5(G)-Direct Plan July 25, 2013 13.44 6.52% 10.48% 4.39% 6.21% 0.98% 8.42% NA NA


Axis Hybrid Fund-6-Regular Plan(G) August 16, 2013 13.23 6.25% 11.34% 3.43% 6.21% -0.17% 8.42% NA NA


Axis Hybrid Fund-6(G)-Direct Plan August 16, 2013 13.84 7.28% 11.34% 4.46% 6.21% 0.80% 8.42% NA NA


Axis Hybrid Fund-7-Regular Plan(G) September 5, 2013 13.24 6.33% 10.89% 3.43% 6.21% 0.08% 8.42% NA NA


Axis Small Cap Fund-Regular Plan(G) November 29, 2013 27.44 26.26% 24.10% 14.05% 12.52% 12.63% 12.54% NA NA

Benchmark: Nifty Free Float Smallcap 100

Axis Small Cap Fund(G)-Direct Plan November 29, 2013 28.79 27.68% 24.10% 15.34% 12.52% 13.87% 12.54% NA NA

Benchmark: Nifty Free Float Smallcap 100

Axis Fixed Term Plan-49-Regular Plan(G) February 3, 2014 13.8059 8.07% 8.63% 6.79% 6.11% 7.78% 7.90% NA NA


Axis Fixed Term Plan-49-(G)-Direct Plan February 3, 2014 13.9939 8.43% 8.63% 7.02% 6.11% 8.01% 7.90% NA NA


Axis Fixed Term Plan-52-Regular Plan(G) February 13, 2014 13.8301 8.18% 8.64% 6.82% 6.11% 7.87% 7.90% NA NA


Axis Fixed Term Plan-52-(G)-Direct Plan February 13, 2014 14.0069 8.51% 8.64% 7.05% 6.11% 8.10% 7.90% NA NA


Axis Fixed Term Plan-64-Regular Plan(G) April 23, 2014 13.5580 8.04% 8.50% 6.42% 6.11% 7.55% 7.90% NA NA


Axis Fixed Term Plan-64-(G)-Direct Plan April 23, 2014 13.8391 8.60% 8.50% 6.97% 6.11% 8.10% 7.90% NA NA


Axis Fixed Term Plan-74-1105D-Regular Plan(G) March 25, 2015 12.67 8.17% 8.20% 6.89% 5.06% 8.16% 8.12% NA NA

Benchmark: CRISIL Composite Bond Fund Index

Axis Fixed Term Plan-74-1105D(G)-Direct Plan March 25, 2015 12.73 8.33% 8.20% 7.04% 5.06% 8.32% 8.12% NA NA

Benchmark: CRISIL Composite Bond Fund Index

Axis Credit Risk Fund-Regular Plan(G) July 15, 2014 13.65 8.76% 8.40% 6.44% 6.11% 8.05% 7.90% NA NA

Benchmark: CRISIL Short Term Bond Fund index

Axis Credit Risk Fund(G)-Direct Plan July 15, 2014 14.24 10.00% 8.40% 7.91% 6.11% 9.39% 7.90% NA NA

Benchmark: CRISIL Short Term Bond Fund index

Axis Arbitrage Fund-Regular Plan(G) August 14, 2014 12.64 6.67% 6.21% 6.00% 4.36% 6.29% 5.65% NA NA

Benchmark: Nifty 50 Arbitrage Index

Axis Arbitrage Fund(G)-Direct Plan August 14, 2014 13.03 7.57% 6.21% 6.86% 4.36% 7.18% 5.65% NA NA

Benchmark: Nifty 50 Arbitrage Index

Axis Hybrid Fund-18-(42 Months)-Regular Plan(G) January 19, 2015 11.29 3.86% 8.32% 6.54% 6.21% 4.03% 8.42% NA NA


Performance of the Scheme of Axis Mutual Fund for the period ended March 31, 2018 (Contd.) Annexure - 1

Returns Since Inception 1 year Return 3 years Return 5 years ReturnName of the Scheme

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)


Date of Allotment


(` in)


9


Axis Hybrid Fund-18-(42 Months)(G)-Direct Plan January 19, 2015 11.67 4.96% 8.32% 7.85% 6.21% 5.13% 8.42% NA NA


Axis Hybrid Fund-19-(42 Months)-Regular Plan(G) February 4, 2015 11.14 3.47% 8.26% 6.59% 6.21% 4.29% 8.42% NA NA


Axis Hybrid Fund-19-(42 Months)(G)-Direct Plan February 4, 2015 11.52 4.58% 8.26% 7.90% 6.21% 5.40% 8.42% NA NA


Axis Hybrid Fund-22-1278D-Regular Plan(G) May 11, 2015 11.16 3.86% 8.84% 6.90% 6.21% NA NA NA NA


Axis Hybrid Fund-22-1278D(G)-Direct Plan May 11, 2015 11.57 5.17% 8.84% 8.39% 6.21% NA NA NA NA


Axis Hybrid Fund-23-1275D-Regular Plan(G) May 28, 2015 11.23 4.16% 8.73% 7.07% 6.21% NA NA NA NA


Axis Hybrid Fund-23-1275D(G)-Direct Plan May 28, 2015 11.64 5.48% 8.73% 8.56% 6.21% NA NA NA NA


Axis Hybrid Fund-24-1276D-Regular Plan(G) June 17, 2015 11.38 4.74% 9.20% 7.18% 6.21% NA NA NA NA


Axis Hybrid Fund-24-1276D(G)-Direct Plan June 17, 2015 11.79 6.07% 9.20% 8.67% 6.21% NA NA NA NA


Axis Hybrid Fund-25-1278D-Regular Plan(G) August 25, 2015 11.32 4.87% 9.23% 5.41% 6.21% NA NA NA NA


Axis Hybrid Fund-25-1278D(G)-Direct Plan August 25, 2015 11.70 6.22% 9.23% 6.88% 6.21% NA NA NA NA


Axis Hybrid Fund-26-1276D-Regular Plan(G) September 10, 2015 11.60 6.00% 9.07% 7.06% 6.10% NA NA NA NA

Benchmark: CRISIL Composite Bond Fund Index (85%) and Nifty 50 Index (15%)

Axis Hybrid Fund-26-1276D(G)-Direct Plan September 10, 2015 11.99 7.36% 9.07% 8.56% 6.10% NA NA NA NA


Axis Hybrid Fund-27-1351D-Regular Plan(G) October 29, 2015 11.51 5.98% 8.51% 7.56% 6.10% NA NA NA NA


Axis Hybrid Fund-27-1351D(G)-Direct Plan October 29, 2015 11.87 7.36% 8.51% 9.06% 6.10% NA NA NA NA


Axis Hybrid Fund-28-1331D-Regular Plan(G) November 18, 2015 11.78 7.19% 8.98% 7.44% 6.10% NA NA NA NA


Axis Hybrid Fund-28-1331D(G)-Direct Plan November 18, 2015 12.15 8.58% 8.98% 8.93% 6.10% NA NA NA NA


Axis Hybrid Fund-29-1275D-Regular Plan(G) February 1, 2016 12.22 9.73% 9.63% 7.25% 6.10% NA NA NA NA


Axis Hybrid Fund-29-1275D(G)-Direct Plan February 1, 2016 12.57 11.18% 9.63% 8.75% 6.10% NA NA NA NA


Axis Hybrid Fund-30-1297D-Regular Plan(G) February 11, 2016 12.67 11.77% 10.40% 7.42% 6.10% NA NA NA NA


Axis Hybrid Fund-30-1297D(G)-Direct Plan February 11, 2016 13.03 13.26% 10.40% 8.91% 6.10% NA NA NA NA


Axis Hybrid Fund-31-1381D-Regular Plan(G) July 19, 2016 11.16 6.69% 8.18% 7.73% 6.45% NA NA NA NA


Axis Hybrid Fund-31-1381D(G)-Direct Plan July 19, 2016 11.47 8.43% 8.18% 9.37% 6.45% NA NA NA NA


Axis Hybrid Fund-32-1367D-Regular Plan(G) August 9, 2016 11.09 6.52% 7.51% 7.80% 6.45% NA NA NA NA


Axis Hybrid Fund-32-1367D(G)-Direct Plan August 9, 2016 11.33 7.92% 7.51% 9.09% 6.45% NA NA NA NA


Axis Hybrid Fund-33-1358D-Regular Plan(G) September 9, 2016 10.92 5.85% 6.94% 7.78% 6.45% NA NA NA NA


Axis Hybrid Fund-33-1358D(G)-Direct Plan September 9, 2016 11.20 7.58% 6.94% 9.42% 6.45% NA NA NA NA




Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)


Date of Allotment


(` in)


10


Axis Hybrid Fund-35-1359D-Regular Plan(G) December 1, 2016 11.40 10.38% 5.74% 7.75% 6.21% NA NA NA NA


Axis Hybrid Fund-35-1359D(G)-Direct Plan December 1, 2016 11.64 12.16% 5.74% 9.38% 6.21% NA NA NA NA


Axis Emerging Opp Fund-1-1400D-Regular Plan(G) December 29, 2016 12.13 16.87% 27.97% 15.29% 14.31% NA NA NA NA


Axis Emerging Opp Fund-1-1400D(G)-Direct Plan December 29, 2016 12.38 18.73% 27.97% 17.01% 14.31% NA NA NA NA


Axis Emerging Opp Fund-2-1400D-Regular Plan(G) February 27, 2017 11.63 15.11% 17.85% 14.01% 14.31% NA NA NA NA


Axis Emerging Opp Fund-2-1400D(G)-Direct Plan February 27, 2017 11.83 16.85% 17.85% 15.64% 14.31% NA NA NA NA


Axis Children's Gift Fund-Compulsory Lock in(G)-Direct Plan December 8, 2015 12.89 11.65% 11.31% 14.22% 8.49% NA NA NA NA

Benchmark: 50% Nifty 50 Index + 50% CRISIL Composite Bond Fund Index

Axis Children's Gift Fund-Compulsory Lock in-Regular Plan(G) December 8, 2015 12.43 9.86% 11.31% 12.34% 8.49% NA NA NA NA


Axis Children's Gift Fund-No Lock in(G)-Direct Plan December 8, 2015 12.99 12.02% 11.31% 14.50% 8.49% NA NA NA NA


Axis Children's Gift Fund-No Lock in-Regular Plan(G) December 8, 2015 12.43 9.86% 11.31% 12.35% 8.49% NA NA NA NA


Axis Equity Saver Fund-Regular Plan(G) August 14, 2015 11.79 6.48% 8.64% 7.97% 6.21% NA NA NA NA


Axis Equity Saver Fund(G)-Direct Plan August 14, 2015 12.17 7.74% 8.64% 9.06% 6.21% NA NA NA NA


Axis Equity Advantage Fund-1-Regular Plan(G) ^ May 25, 2017 10.74 7.40% 6.86% NA NA NA NA NA NA

Benchmark: Nifty 50 Index (75%) + CRISIL Composite Bond Fund Index (25%)

Axis Equity Advantage Fund-1-(G)-Direct Plan ^ May 25, 2017 10.90 9.00% 6.86% NA NA NA NA NA NA


Axis Nifty ETF ^ July 3, 2017 1,019.42 7.17% 6.17% NA NA NA NA NA NA

Benchmark: Nifty 50 -

Axis Corporate Debt Fund-Regular Plan(G) ^ July 13, 2017 10.48 4.78% 3.61% NA NA NA NA NA NA


Axis Corporate Debt Fund(G)-Direct Plan ^ July 13, 2017 10.55 5.44% 3.61% NA NA NA NA NA NA


Axis Dynamic Equity Fund-Regular Plan(G) ^ August 1, 2017 10.35 3.50% 1.50% NA NA NA NA NA NA

Benchmark: CRISIL Hybrid 35+65 - Aggressive Index

Axis Dynamic Equity Fund(G)-Direct Plan ^ August 1, 2017 10.47 4.70% 1.50% NA NA NA NA NA NA

Benchmark: CRISIL Hybrid 35+65 - Aggressive Index

Axis Equity Advantage Fund-2-Regular Plan(G) ^ August 3, 2017 10.08 0.80% 1.52% NA NA NA NA NA NA


Axis Equity Advantage Fund-2-(G)-Direct Plan ^ August 3, 2017 10.21 2.10% 1.52% NA NA NA NA NA NA


Axis Multicap Fund-Regular Plan(G) ^ November 20, 2017 10.03 0.30% -2.15% NA NA NA NA NA NA

Benchmark: Nifty 500 Index

Axis Multicap Fund(G)-Direct Plan ^ November 20, 2017 10.09 0.90% -2.15% NA NA NA NA NA NA

Benchmark: Nifty 500 Index

Axis Capital Builder Fund-1-1540D-Regular Plan(G) ^ March 8, 2018 10.02 0.20% -0.85% NA NA NA NA NA NA

Benchmark: Nifty 500

Axis Capital Builder Fund-1-1540D(G)-Direct Plan ^ March 8, 2018 10.03 0.30% -0.85% NA NA NA NA NA NA

Benchmark: Nifty 500



Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)

Scheme Return

(%)

Benchmark Returns

(%)


Returns are calculated for the Growth Options of the respective Plan(s), considering the movement of NAV during the period. Returns above one year are CAGR.

^ Schemes launched during the F.Y. 2017-18

Date of Allotment


(` in)


11

I A Non receipt of Dividend on Units 0 2 2 0 0 0 0 0 0 0 0I B Interest on delayed payment of Dividend 0 23 23 0 0 0 0 0 0 0 0I C Non receipt of Redemption Proceeds0 27 27 0 0 0 0 0 0 0 0I D Interest on delayed payment of Redemption 0 30 30 0 0 0 0 0 0 0 0II A Non receipt of Statement of Account/Unit Certificate 0 0 0 0 0 0 0 0 0 0 0II B Discrepancy in Statement of Account 0 0 0 0 0 0 0 0 0 0 0II C Data corrections in Investor details 0 76 76 0 0 0 0 0 0 0 0II D Non receipt of Annual Report/Abridged Summary 0 0 0 0 0 0 0 0 0 0 0III A Wrong switch between Schemes 0 0 0 0 0 0 0 0 0 0 0III B Unauthorized switch between Schemes 0 0 0 0 0 0 0 0 0 0 0III C Deviation from Scheme attributes 0 0 0 0 0 0 0 0 0 0 0III D Wrong or excess charges/load 0 0 0 0 0 0 0 0 0 0 0III E Non updation of changes viz. address, PAN, 8 224 210 15 2 0 0 5 0 0 0

bank details, nomination, etcIV Others** 0 0 0 0 0 0 0 0 0 0 0

TOTAL 8 382 368 15 2 0 0 5 0 0 0# including against its authorized persons/ distributors/ employees. etc.*Non actionable means the complaint that are incomplete / outside the scope of the mutual fund.** If others include a type of complaint which is more than 10% of overall complaint, provide that reason separately.

Type of Complaint#Complaint Code9-12

months6-9

months3-6

months0-3

months

PendingNon

Actionable*Beyond 180 days

60-180 days

Within30 days

30-60 days

Resolved(b) No. of Complaints

received during the year

Action on (a) and (b)(a) No. of complaints

pending at the beginning of

the year

Total Number of Folios : 2723311Redressal of Complaints received against Axis Mutual Fund during 2017-18

Annexure - 2


12


INDEPENDENT AUDITOR’S REPORT

To the Trustees of

AXIS MUTUAL FUND

Report on the Financial Statements

We have audited the accompanying financial statements of the schemes mentioned below (collectively “the

Schemes”), which comprise the balance sheets as at March 31, 2018, the revenue accounts and cash flow

statements, where applicable, for the year then ended, and a summary of significant accounting policies and

other explanatory information.

• Axis Liquid Fund • Axis Treasury Advantage Fund • Axis Banking & PSU Debt Fund • Axis Short Term Fund • Axis Regular Savings Fund • Axis Dynamic Bond Fund

Management’s Responsibility for the Financial Statements

Management of Axis Asset Management Company Limited (“Company”), the scheme’s asset manager, is

responsible for the preparation of these financial statements that give a true and fair view of the financial

position, financial performance and cash flows, where applicable, of the Schemes in accordance with accounting

principles generally accepted in India, including the accounting policies and standards specified in the Ninth

Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments

thereto (‘the SEBI Regulations’). This responsibility also includes maintenance of adequate accounting records

and the design, implementation and maintenance of internal control relevant to the preparation and presentation

of the financial statements that give a true and fair view and are free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our

audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India.

Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the Scheme’s preparation and fair presentation of

the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for

the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates

made by management, as well as evaluating the overall presentation of the financial statements. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial

statements give the information required by the SEBI Regulations in the manner so required and give a true and

fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the balance sheets, of the state of affairs of the respective Schemes as at March 31, 2018;

(b) in the case of the revenue accounts, of the surplus for the year ended on that date; and

13


(c) in the case of the cash flow statements, where applicable, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Regulation 55(4) and clause 5(ii)(2) of the Eleventh Schedule of the Regulations, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, the balance sheets and revenue accounts dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule

to the Regulations; and

c. The balance sheets, revenue accounts and cash flow statements, where applicable, dealt with by this report are in agreement with the books of account of the Scheme.

2. In our opinion, and on the basis of information and explanations given to us, the methods used to value non traded securities as at March 31, 2018 are in accordance with the Regulations and other guidelines issued by

the Securities and Exchange Board of India, as applicable, and approved by the Board of Directors of Axis

Mutual Fund Trustee Limited, and are fair and reasonable.

For S.R. Batliboi & Co. LLP

Chartered Accountants

ICAI Firm Registration Number: 301003E/E300005

per Jayesh Gandhi

Partner

Membership Number: 37924

Place: Mumbai

Date: May 21, 2018

14


Axis Liquid Fund Axis Liquid Fund

Axis Treasury

Advantage Fund

Axis Treasury

Advantage Fund

Axis Banking &

PSU Debt Fund

Axis Banking &

PSU Debt Fund

Axis Short Term

Fund

Axis Short Term

Fund

Axis Regular

Savings Fund

Axis Regular

Savings Fund

Axis Dynamic

Bond Fund

Axis Dynamic Bond

Fund

March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

Schedule

SOURCES OF FUNDS

Unit capital 2(b) & 3 85,985,040 81,255,605 15,334,909

19,653,282

4,542,234

4,336,235

30,708,395

35,009,374

8,041,391 1,563,495 1,330,880 2,034,198

Reserves and surplus 2(b) & 4 62,724,353 54,030,599 10,702,959 8,565,449 2,347,432 1,635,238 26,383,236 24,906,018 5,675,747 865,119 969,924 1,351,257Loans 2(f) & 16 39,119,610 24,364,303 1,768,111

-

-

-

-

-

- - - -

Current liabilities 5 365,472 1,849,304 86,852

59,733

4,505

7,665

250,702

616,311

44,914 2,680 249,262 5,591

188,194,475 161,499,811 27,892,831

28,278,464

6,894,171

5,979,138

57,342,333

60,531,703

13,762,052 2,431,294 2,550,066 3,391,046

APPLICATION OF FUNDS

Investments 2(c), 6 & 24 178,552,622 145,175,409 26,726,308 23,745,288 6,689,938 5,632,531 55,392,573 58,352,538 13,151,408 2,153,739 2,194,348 3,259,867

Deposits 7 9,000,000 14,500,000 - 2,000,000 - - - - - - - -

Other current assets 8 641,853 1,824,402 1,166,523 2,533,176 204,233 346,607 1,949,760 2,179,165 610,644 277,555 355,718 131,179

188,194,475 161,499,811 27,892,831 28,278,464 6,894,171 5,979,138 57,342,333 60,531,703 13,762,052 2,431,294 2,550,066 3,391,046

The accompanying schedules are an integral part of this balance sheet.

As per our report of even date.

Balance Sheet(All amounts in thousands of Rupees)

For and on behalf of For and on behalf of

Axis Mutual Fund Trustee Limited Axis Asset Managenent Company Limited

T.C. Nair Bapi Munshi Chandresh Kumar Nigam Ashok Sinha

Director Director Managing Director & CEO Director

R. Sivakumar Devang Shah Aditya Pagaria

Head-Fixed Income & Fund Manager Fund Manager-Fixed Income Fund Manager-Fixed Income


ICAI Firm Registration No. 301003E/E300005


per Jayesh Gandhi

Partner

Membership No. 37924

Mumbai

Date: May 21, 2018

15


Axis Liquid Fund Axis Liquid Fund

Axis Treasury

Advantage Fund

Axis Treasury

Advantage Fund

Axis Banking &

PSU Debt Fund

Axis Banking &

PSU Debt Fund

Axis Short Term

Fund

Axis Short Term

Fund

Axis Regular

Savings Fund

Axis Regular

Savings Fund

Axis Dynamic

Bond Fund

Axis Dynamic

Bond Fund

April 01, 2017 April 01, 2016 April 01, 2017 April 01, 2016 April 01, 2017 April 01, 2016 April 01, 2017 April 01, 2016 April 01, 2017 April 01, 2016 April 01, 2017 April 01, 2016

to to to to to to to to to to to to

March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

Schedule

INCOME AND GAINS

Interest 2(d) & 9 14,682,177 9,712,479 2,030,759 1,817,929 537,290 458,970 5,084,806 4,105,052 647,235 182,756 249,045 248,465

Profit on sale/redemption of investments (including F&O), net 2(d) - - 166,434 36,774 - 46,313 - 493,648 7,074 35,237 - 107,378

Profit on inter-scheme transfer/sale of investments, net 2(d) - 4,515

-

56,367

1,652

14,538

13,737

65,219

1,609 22,180 5,605 21,568

Load Income - -

-

-

2

1

5

4

6,684 568 1,410 3,675

Other Income 8 -

619

-

# -

75

111

# - # -

Net change in marked to market in value of investments 2(c) & 6(ii) 126,762 (33,097)

(2,834)

22,394

1,254

(36,492)

(422,304)

81,485

(68,265) 6,940 (33,777) (3,502)

Total 14,808,947 9,683,897

2,194,978

1,933,464

540,198

483,330

4,676,319

4,745,519

594,337 247,681 222,283 377,584

EXPENSES AND LOSSES

Loss on sale/redemption of investments (including F&O), net 2(d) 8,365 1,347

-

-

8,799

-

22,765

-

- - 46,468 -

Loss on inter-scheme transfer/sale of investments, net 2(d) 6,325 -

15,537

-

-

-

-

-

- - - -

Management fee 10 107,191 51,657 92,518 74,623 15,274 13,177 213,568 188,240 60,228 20,779 32,117 34,757Service Tax / GST on Management Fees 17,713 7,699

15,744

11,139

2,645

1,959

36,744

28,121

10,650 3,092 5,532 5,183

Trusteeship fee 10 1,512 1,146

203

203

51

52

472

438

56 19 23 28

Investor education expense 43,971 27,252

5,980

4,824

1,470

1,208

13,806

10,468

1,567 438 666 650

Custodian service charges 20,846 13,158

2,835

2,332

697

585

7,058

5,517

805 233 340 346

Registrar service charges 27,304 17,214

7,785

6,654

947

796

27,551

20,453

3,184 889 1,352 1,385

Commission to distributors 2,655 -

-

-

-

-

-

-

- - - 1,183

Audit fee 441 333

272

240

186

176

373

297

121 117 123 117

Marketing expenses - 2

-

2

-

# -

# 55 # - #

Listing fee 65 59

23

15

24

10

9

4

4 4 3 3

Other operating expenses 6,481 4,265 1,429 1,735 293 419 2,026 1,356 353 307 225 210

Less: Expenses reimbursed/to be reimbursed by AMC - (1,761) - (21) (122) - (43) - - (153) (69) (170)

Total 242,869 122,371 142,326 101,746 30,264 18,382 324,329 254,894 77,023 25,725 86,780 43,692

Surplus / (Deficit) for the year 14,566,078 9,561,526 2,052,652 1,831,718 509,934 464,948 4,351,990 4,490,625 517,314 221,956 135,503 333,892

Transfer from / (to) unrealised appreciation reserve (126,762) 33,097 2,834 (22,394) (227) 35,466 180,995 (81,485) 23,134 (6,940) 28,480 3,502

Equalisation (debit) / credit 2(e) (4,098,916) 24,062,153 (5,632,232) 8,937,820 315,797 (801,430) (2,428,688) 11,215,054 3,844,794 12,777 (464,016) (6,402)

Transfer from retained surplus 50,401 24,598 17,789 3,247 31,691 31,538 22,635 31,353 6,863 4,523 8,727 3,684

Dividend distribution (990,335) (744,304) (216,840) (274,994) (51,549) (50,945) (82,053) (133,674) (13,107) (7,989) (7,632) (12,899)

Dividend distribution tax on distributed income (461,500) (353,947) (93,576) (121,028) (21,695) (22,269) (37,563) (62,224) (5,153) (3,121) (3,354) (5,524)

Surplus / (Deficit) transferred to the retained surplus 4 8,938,966 32,583,123 (3,869,373) 10,354,369 783,951 (342,692) 2,007,316 15,459,649 4,373,845 221,206 (302,292) 316,253

# Amount less than Rs. 0.5 thousand

The accompanying schedules are an integral part of this revenue account.


Revenue Account(All amounts in thousands of Rupees)










per Jayesh Gandhi

Partner


Mumbai

Date: May 21, 2018

16

Particulars Axis Liquid Fund Axis Liquid Fund

Axis Treasury

Advantage Fund

Axis Treasury

Advantage Fund

Axis Banking &

PSU Debt Fund

Axis Banking &

PSU Debt Fund

Axis Short Term

Fund

Axis Short Term

Fund

April 01, 2017

to

March 31, 2018

April 01, 2016

to

March 31, 2017

April 01, 2017

to

March 31, 2018

April 01, 2016

to

March 31, 2017

April 01, 2017

to

March 31, 2018

April 01, 2016

to

March 31, 2017

April 01, 2017

to

March 31, 2018

April 01, 2016

to

March 31, 2017

A. Cashflow from operating activities

Net Surplus / (Deficit) for the year 14,566,078 9,561,526 2,052,652 1,831,718 509,934 464,948 4,351,990 4,490,625

Adjustments for:-

Net change in marked to market in value of investments (126,762) 33,097 2,834 (22,394) (1,254) 36,492 422,304 (81,485)

(Increase)/Decrease in investments at cost (33,504,385) (76,121,157) (2,983,854) (9,114,616) (1,056,153) 2,427,527 2,692,250 (34,302,276)

(Increase)/Decrease in other current assets (134,563)

(56,658)

111,505

(465,999)

71,763

(103,356) 223,778 (1,390,252)

Increase/(Decrease) in current liabilities 11,502

512

25,804

1,031

(3,614)

1,216 14,219 9,581

(Increase)/Decrease in deposits 5,500,000

(4,499,997)

-

26

-

- - 35

Interest expense on borrowing 1,086,976

564,136

632

-

-

- - -

Net cash used in operations ( A ) (12,601,154)

(70,518,541)

(790,427)

(7,770,234)

(479,324)

2,826,827 7,704,541 (31,273,772)

B Cashflow from financing activities

Increase/(Decrease) in unit capital 4,943,740

41,662,296

(4,325,980)

8,983,557

205,631

(1,769,240) (4,310,987) 18,265,911

Increase/(Decrease) in unit premium reserve (4,420,489)

23,296,222

395,274

2,941,111

275,504

(805,604) (2,755,156) 12,700,046

Proceeds from borrowing 4,630,996,017 2,141,478,555 1,768,111 - - - - - Repayment of borrowing (4,616,240,710)

(2,134,186,429)

-

-

-

-

Interest paid on borrowing (1,063,044)

(563,929)

627

-

-

- - -

Adjustments for:- Increase/(Decrease) in redemption payable for units

redeemed by investors3,740

909

6,939

9,792

864

(4,264) (522,944) 528,029

(Increase)/Decrease in subscription receivable for units

issued to investors (2)

405

(2,226)

5,360

558

(481) 948 762

Dividend paid (including tax thereon) (1,447,707)

(1,097,819)

(309,693)

(398,021)

(73,286)

(73,938) (121,081) (194,447)

Net cash generated from financing activities ( B ) 12,771,545

70,590,210

(2,466,948)

11,541,799

409,271

(2,653,527) (7,709,220) 31,300,301

Net Increase/(Decrease) in cash and cash equivalents (A+B) 170,391 71,669 (3,257,375) 3,771,565 (70,053) 173,300 (4,679) 26,529

Cash and Cash Equivalents as at the beginning of the year 147,704 76,035 3,979,879 208,314 180,187 6,887 118,630 92,101

Cash and Cash Equivalents as at the close of the year 318,095 147,704 722,504 3,979,879 110,134 180,187 113,951 118,630

Component of cash and cash equivalents March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

Balances with banks in current accounts 103,980 110,895 62,409 73,750 2,832 6,278 31,520 8,043Deposits with scheduled banks - - - 2,000,000 - - - -Collateralised lending 214,115 36,809 660,095 1,906,129 107,302 173,909 82,431 110,587

Total 318,095 147,704 722,504 3,979,879 110,134 180,187 113,951 118,630


Cash Flow Statement

(All amounts in thousands of Rupees)











per Jayesh Gandhi

Partner


Mumbai

Date: May 21, 201817


1. BACKGROUND

Scheme Name Type of Scheme NFO Open

NFO Close

Axis Liquid Fund An Open-ended Liquid

Scheme

October 8, 2009

to

October 8, 2009

Axis Treasury Advantage Fund An Open-ended Debt Scheme October 8, 2009

to

October 8, 2009

Axis Banking & PSU Debt Fund # An Open-ended Debt Scheme May 30, 2012

to

June 7, 2012

Axis Short Term Fund An Open-ended Debt Scheme January 19, 2010

to

January 20, 2010

Axis Regular Savings Fund

{formerly known as Axis Income

Fund} ##

An Open-ended Debt Scheme March 09, 2012

to

March 21, 2012

Retail Growth

Retail Daily Dividend

Retail Weekly Dividend

Retail Monthly Dividend

Growth

Daily Dividend

Weekly Dividend

Monthly Dividend

Bonus

Direct Growth

Direct Daily Dividend

Direct Weekly Dividend

Direct Monthly Dividend

Direct Bonus

In accordance with the Securities and Exchange Board of India ('SEBI') (Mutual Funds) Regulations, 1996 ('the SEBI Regulations'), the Board of Directors of Axis MutualFund

Trustee Limited ('the Trustee') has appointed Axis Asset Management Company Limited ('the AMC') to manage the Fund's affairs and operate its Schemes.

To provide a high level of liquidity with reasonable

returns commensurating with low risk through a

portfolio of money market and debt securities.

However, there can be no

assurance that the investment objective of the

Scheme will be achieved.

Schedules to the financial statements for the year ended March 31, 2018

Axis Bank Limited is the sponsor of Axis Mutual Fund ('The Fund').

The key features of the following schemes of Axis Mutual Fund are as below:

OptionsInvestment objective of the Scheme

Axis Bank Limited holds 75% less one equityshare of the total issued and paid up equityshare capital of Axis Asset ManagementCompany Limited and the balance 25% plus one

equity share is held by Schroders Investment Management (Singapore) Limited (SIMSL) through its wholly owned subsidiary, Schroders Singapore Holdings Private Limited

(SSHPL), both subsidiaries of Schroders plc.

To generate optimal returns in the medium term

while maintaining liquidity of the portfolio by

investing in debt and money market instruments.

Growth

Quarterly Dividend

Half Yearly Dividend

Bonus

Direct Growth

Direct Quarterly Dividend

Direct Half Yearly Dividend

Direct Bonus

The investment objective is to provide optimal

returns and liquidity to the investors by

investing primarily in a mix of money market and

short term debt instruments which results

in a portfolio having marginally higher maturity as

compared to a liquid fund at the same

time maintaining a balance between safety and

liquidity. However, there can be no

assurance that the investment objective of the

scheme will be achieved.

Retail Growth

Retail Daily Dividend



Growth

Daily Dividend

Weekly Dividend

Monthly Dividend

Bonus

Direct Growth




Direct Bonus

To generate stable returns by investing

predominantly in debt & money market instruments

issued by Banks, Public Sector Units (PSUs) &

Public Financial Institutions (PFIs). The scheme

shall endeavor to generate optimum returns with

low credit risk.

Growth

Daily Dividend

Weekly Dividend

Monthly Dividend

Bonus

Direct Growth




Direct Bonus

The scheme will endeavor to generate stable

returns with a low risk strategy while

maintaining liquidity through a portfolio comprising

of debt and money market

instruments. However, there can be no assurance

that the investment objective of the

scheme will be achieved.

Bonus

Growth

Weekly Dividend

Monthly Dividend

Regular Dividend

Retail Growth



Direct Bonus

Direct Growth



Direct Regular Dividend

18


Schedules to the financial statements for the year ended March 31, 2018 (Contd.)

Axis Dynamic Bond Fund An Open-ended Debt Scheme April 6, 2011

to

April 20, 2011

# Name of the scheme changed from Axis Banking Debt Fund to Axis Banking & PSU Debt Fund effective from November 29, 2016.

## Name of the scheme changed from Axis Income Fund to Axis Regular Savings Fund effective from April 10, 2017.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Determination of net asset value ('NAV')

The net asset value of the units are determined separately for the units issued under the Options.

(b) Unit capital

Unit capital represents the net outstanding units at the balance sheet date, thereby reflecting all transactions relating to the period ended on that date.

(c) Investments

Accounting for investments

Valuation of investments

All the above schemes have been collectively referred to as "Schemes".

The financial statements are prepared on the accrual basis of accounting, under the historical cost convention, as modified for investments, which are ‘marked-to-market’.The

significant accounting policies, which are in accordance with the SEBI Regulations and have been approved by the Boards of Directors of the AMC and the Trustee, are stated

below.

Documents

Annual Report - 2017-2018 - Mutual Funds Online | Axis MF · We have pleasure in presenting the Ninth Annual Report of the schemes of Axis Mutual Fund for the period ended March 31,