AXIS MIDCAP FUND(An open ended equity scheme predominantly investing in Mid Cap stocks)

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There is a high dispersion in long term stock performance

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CNX Midcap Index – Stock dispersion (2007-2017)

Source: Bloomberg, Data considered from Dec 2007 - Dec 2017

% pa % Absolute

Quartile I 26.8% 1025.7%

Quartile II 12.1% 224.6%

Nifty Midcap 100 Index 8.7% 129.5%

Quartile III 0.3% 7.3%

Quartile IV -16.8% -73.9%

Weak companies

have destroyed

significant investor

wealth

Large dispersion in stock performance in

mid-caps

• The cost of mistakes can be very high –

permanent capital erosion

• Stock picking and focus on

sustainability becomes key

Axis Midcap Fund: Positioning

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1

2

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Invests at least 65% in mid

cap companies^

Risk management embedded in the investment

process

Follows a strategy of combining growth potential of

mid cap companies with the track record of larger

companies

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. Market caps are defined as per SEBI regulations

as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market

capitalization.

Focused on emerging

sectors/businesses that have

potential to deliver high growth

We look for businesses with

Economic Moat

Unique long term orientation that helps investors

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Traditional Life Cycle of a company

Emerging companies

High growth phase

But prone to higher risks

Business not yet well establishedSuperior growth profile

Established track record

Maintains flexibility

Lower risk compared to

smaller companies

Stable growth

Established business models

Reduced flexibility

Lower risk compared to mid

cap companies

Growth Phase

Newly established

businesses

No track record

Prone to significantly higher

risks

Mid CapsSmall Caps

Start-up Phase Mature Phase

Large Caps

Changes made to the portfolio over the last 1 year

Portfolio Characteristics Nov 17 Nov 18

No. of Stocks 44 35

Market Cap Mix

Large Caps: 15%

Mid Caps: 77%

Small Caps: 2%

(Remaining in cash &

cash equivalents)

Large Caps: 13%

Mid Caps:65%

Small Caps: 6%

(Remaining in cash & cash equivalents)

Top 10 stocks (% of portfolio) 39% 40%

Top stocks with increased

exposure/entries

Change in exposure

(%) over last year

Top stocks with reduced exposure/

exits

Change in exposure (%)

over last year

HDFC Bank Ltd 3.9%Procter & Gamble Hygiene and Health

Care Ltd-4.1%

Torrent Pharmaceuticals Ltd 3.8% V-Guard Industries Limited -2.9%

Astral Poly Technik Ltd 3.5% Page Industries Ltd -2.7%

ACC Ltd 2.9% Bajaj Finserv Ltd -2.6%

Sanofi India Ltd 2.7% Tata Chemicals Ltd -2.5%

Exposure as % of Net assets. Source : ValueFY, ACEMF. 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. Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c.

Small Cap: 251st company onwards in terms of full market capitalization. Past performance may or may not be sustained in the future. 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.

Key sectors

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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).

Auto & Logistics

• Improving economy and moderating ownership costs, with falling interest rates and fuel prices to drive gradual recovery in demand over coming years

Finance

• Asset quality pressure to taper off with an economic uptick, deleveraging in the corporate sector and peaking growth in stressed loans

Consumer & Media

• Indian consumer sector has been facing headwinds due to weak macro and benign input costs.

• Improving economy to drive high margins over the next years

• The advertising market is showing initial signs of a pickup after a prolonged period of sub-nominal GDP growth

Illustrations:

• Sector: Media & Publishing

• Strong management

• Healthy operating performance

• Impressive market share in the industry ( ~ 25% )

• Strong presence across locations coupled with growth levers like advertisements, etc.

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• Sector: Consumers

• Good quality management

• One of the top paint companies and market leader in industrial paint for past 4-5 decades

• Has consistent track record and one of the fastest growing paint companies

• Global presence

• Sector: Financial Services

• A subsidiary of a reputed financial institution; superior management team with good track record

• Niche business (rural housing finance) catering to under-banked, self-employed

• Superior asset quality along with sustainable low risk & consistent returns

• Return on Equity (RoE) of over 30% over last 7 years

Company A Company B Company C

This is merely an illustration to explain the investment philosophy. It does not constitute any advise to sell, buy or in any manner transact in this security and should not be considered as Research Report. The fund

manager may choose not to hold the stock at a later date. There may be other stocks in the portfolio which may not have had a similar performance. The mutual fund scheme(s), AMC, trust company, any

associate(s), director(s), employees etc may hold position in various securities from time to time. Investors are advised to consult their independent advisors. Past performance may or may not be sustained in

future.

Current Portfolio & Risk Parameters (30th Nov 18)

*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. 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). Data as on 30th November 2018

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Risk parameters (3 years)Top 5 sector holdings

Top 10 stocks Current market cap split (% NAV)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nov-16 May-17 Nov-17 May-18 Nov-18

Large Cap Midcap Small Cap

Invests primarily in mid cap companies

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Wtd. average portfolio market Cap: 53,815 crs.

Large Cap

Mid Cap

Small Cap

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. Market caps are defined as per SEBI regulations

as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market

capitalization.

Small Cap

Performance – 30th Nov 2018

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Large Cap

Small Cap

SIP Performance as on Nov 30, 2018

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Past performance may or may not be sustained in future.

To illustrate the advantage of SIP investments, this is how your investment would have grown if you had invested say Rs. 10,000 systematically on the first business day of every month over a period of time.

Calculations are based on Growth Option NAV. Since inception returns are calculated at Rs. 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is

given is indicated above. Returns greater than 1 year period are compounded annualized. SIP returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return).

Benchmark: BSE Midcap Index. Additional Benchmark: Nifty 50 Index. Inception Date: 18th Feb 2011.

This scheme is managed by Shreyash Devalkar. He is managing the scheme since 23rd November 2016 and he manages 5 schemes of Axis Mutual Fund. Please refer to the Annexure for returns of all the schemes

managed by him.

SIP Investments Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP

Total Amount Invested 930,000 600,000 360,000 120,000

Market value as on November 30, 2018 1,875,826 841,933 432,977 120,046

Returns (Annualised) % 17.65% 13.52% 12.37% 0.07%

Benchmark Returns (Annualised) % 14.92% 12.48% 7.10% -11.98%

Additional Benchmark Returns (Annualised)

% 12.10% 11.14% 12.41% 4.52%

Annexure – 30th Nov 2018

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Past performance may or may not be sustained in future. Data as on 30th November, 2018. @@The performance data for 5 years period has not been provided for scheme/plan not in existence for 5 years.

@The performance data for 3 years period has not been provided for scheme/plan not in existence for 3 years. Calculations are based on Growth Option NAV. Since inception returns are calculated on Rs. 10/-

invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Above data excludes returns of schemes which have not completed

a year. Shreyash Devalkar is managing Axis Bluechip Fund and Axis Midcap Fund since 23rd November 2016, Axis Equity Advantage Fund - Series 1 & 2 & Axis Multicap Fund since inception.

Product Labelling

Fund Name Riskometer Product Labelling

Axis Bluechip Fund

(An open ended equity scheme predominantly

investing in large cap stocks)

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

of large cap companies

Axis Midcap Fund

(An open ended equity scheme predominantly

investing in Mid Cap stocks)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investing predominantly in equity & equity related

instruments of Mid Cap companies.

Axis Equity Advantage Fund Sr 1 & 2

(A Close Ended Equity Scheme)

This product is suitable for investors who are seeking*

• Capital appreciation over medium to long term

• Investment in a diversified portfolio of

predominantly equity and equity related instruments

across market cap while managing risk through

active hedging strategies

Axis Multicap Fund

(An open ended equity scheme investing across

large cap, mid cap, small cap stocks)

This product is suitable for investors who are seeking*

• Capital appreciation over medium to long term

• Investment in a diversified portfolio consisting of

equity and equity related instruments across market

capitalization.

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

Statutory Details and Risk Factors

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Data updated as on 30th Nov 2018.

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). 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.

Thank you