Making a choice that leads to favourable results

Transcription

1 MONTHLY - APRIL, 2018 Making a choice that leads to favourable results It is our choices that define our accomplishments. Hence, Axis Focused 25 Fund chooses upto 25 stocks that are aimed at long-term wealth creation.

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4 I N D E X Tax Reckoner 2 How To Read A Factsheet 5 Equity Funds Equity Outlook 6 Axis Equity Fund 7 Axis Focused 25 Fund 8 Axis Midcap Fund 9 Axis Long Term Equity Fund 10 Axis Multicap Fund 11 Axis Enhanced Arbitrage Fund 12 Debt Funds Fixed Income Outlook 13 Axis Liquid Fund 14 Axis Treasury Advantage Fund 15 Axis Short Term Fund 16 Axis Dynamic Bond Fund 17 Axis Corporate Debt Opportunities Fund 18 Axis Regular Savings Fund 19 Axis Fixed Income Opportunities Fund 20 Axis Constant Maturity 10 Year Fund 21 Axis Banking And PSU Debt Fund 22 Hybrid Funds Hybrid Outlook 23 Axis Equity Saver Fund 24 Axis Dynamic Equity Fund 25 Axis Income Saver 26 Axis Children s Gift Fund 27 Axis Triple Advantage Fund 28 SIP Performance Of Selected Schemes 29 s Load Structure And Minimum Investment Amount Annexures Expense Ratios Product Labeling

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6 EQUITY M A Y % 15.4% 6.2% QUICK TAKE Equity market valuations are broadly reasonable adjusted for the cyclical low in earnings and potential for revival going forward. We remain bullish on equities from a medium to long term perspective KEY HIGHLIGHTS Investors are suggested to have their asset allocation plan based on one s risk appetite and future goals in life. DOMESTIC GLOBAL CORPORATE Buoyed by global optimism and domestic cheer on initial quarterly earnings, the BSE Sensex and NIFTY 50 Index gained 6% in the month. Midcap and small cap indices recovered 5.8% and 7.6% respectively. FPIs continued to remain net sellers this month with sales of US$0.8 bn during the month while DIIs bought US$1.16 bn worth of equities. CPI inflation eased to 4.3% in March V/s 4.44% in February. Core inflation inched up marginally to 5.2%. IIP numbers in February continued to indicate a nascent recovery in the manufacturing sector. USD-INR depreciated to ` 66.5/US$ in April from ` 65.1/US$ in March on rising crude prices and ebbing foreign flows. Crude prices have seen their highest levels in 4 years. WTI Brent crude ended the quarter at US$73.81/barrel. India being an oil importing nation is highly sensitive to movements in crude prices. Sustained high levels in crude oil is likely to impact budget calculations on the fiscal side and inflation management by the RBI. The MPC left the key policy rates unchanged in its latest policy review. The tone of the policy however was mildly dovish on the back of the recent fall in headline CPI numbers. The tone does assign some upside risks on account of crude prices and food inflation. Key announcements in the policy also included much needed relief for the banking sector with the deferment of IND AS and deferment in the counter cyclical buffer (CCB) aiding bank capital levels. The policy benchmark the repo rate remains at 6.0% and the reverse repo at 5.75%. The corporate earnings season begun with prominent results in the information technology and financial sectors. Large bell weather stocks in these sectors have beaten market consensus estimates and our internal estimates. The performance of portfolio companies is encouraging. As the results season unfolds, we should get better clarity on the overall performance for companies. The IMD has forecasted a normal monsoon for the year. Historically, consumption has done well in normal & above normal monsoon years. While it is too early to be conclusive, high frequency statistics on consumption trends have shown improvements. We continue to believe in the rural consumption story that is expected to play out over the next few quarters. We believe that rural centric policies undertaken in the run up to the 2019 general elections, will bode well for rural spending for the next few quarters. The economy continues to stand on a solid macro foundation and political stability. The month ahead will see elections in Karnataka which will be an indicator for the political mood in the country. The resultant mandate for the ruling party will set the tone for the markets going forward. On the global front, commentary from the FOMC meeting will drive global sentiment. We continue to expect elevated volatility levels in the equity markets and hence advise investors to look at equity allocations from a medium to long term investment horizon. Systematic investments into equity products could also help investors ride out short term volatility. Source: Bloomberg, Axis MF Research. 6

7 AXIS EQUITY FUND (AN OPEN-ENDED LARGE CAP EQUITY SCHEME) INVESTMENT OBJECTIVE: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. FUND STYLE 5th January , Cr. 1, Cr. Nifty 50 Investment Style Value Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard Deviation % Beta Sharpe Ratio** SECTOR ALLOCATION TURNOVER* (1 YEAR) 1.77 times Banks Finance Auto Consumer Non Durables 8.70 Software 7.99 PERFORMANCE (as on 30th ) Date Period Scheme Returns NIFTY 50 S&P BSE SENSEX Mr. Shreyash Devalkar Work experience:16 years. He has been managing this fund since 23rd November 2016 Auto Ancillaries 5.17 Retailing 3.75 Textile Products 2.92 Construction 2.48 Project 8.69 Current Value of `10,000 invested Scheme NIFTY 50 S&P BSE SENSEX Returns Axis Equity Fund - Growth 28-Apr-17 Last 1 Year 21.00% 16.91% 18.88% 12,100 11,691 11, Apr-15 Last 3 Years 12.00% 10.89% 10.71% 14,052 13,640 13, Apr-13 Last 5 Years 15.63% 14.03% 14.15% 20,676 19,286 19,387 Since Inception (5-Jan-10) 12.33% 10.22% 10.19% 26,320 22,470 22,418 Axis Equity Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 22.72% 16.91% 18.88% 12,272 11,691 11, Apr-15 Last 3 Years 13.28% 10.89% 10.71% 14,542 13,640 13, Apr-13 Last 5 Years 16.95% 14.03% 14.15% 21,887 19,286 19,387 Since Inception (1-Jan-13) 16.87% 13.07% 13.18% 22,947 19,244 19,344 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated at `10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Shreyash Devalkar is managing the scheme since 23rd November 2016 and he manages 5 schemes of Axis Mutual Fund. Please refer to annexure on Page 32 for performance of all schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 18. s Record Date DIVIDENDS Regular Plan Direct Plan Mar 15, Dividend Mar 21, Mar 10, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Data as on 30th April EXIT LOAD If redeemed / switched-out within 12 months from the date of allotment, For 10 % of investments: Nil, For remaining investments: 1%, If redeemed / switched - out after 12 months from the date of allotment:nil (w.e.f. 25th September 2017) **Risk-free rate assumed to be 6.00% (MIBOR as on ) - Source: Please note that as per AMFI guidelines for factsheet, the ratios are calculated based on month rolling returns (absolute) for last 3 years. Data as on 30th April Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. 7 % OF ASSETS BANKS HDFC Bank Limited 9.53 Kotak Mahindra Bank Limited 8.22 IndusInd Bank Limited 2.77 Bandhan Bank Limited 2.24 FINANCE HDFC Limited 6.44 Bajaj Finance Limited 5.56 Bajaj Finserv Limited 1.02 AUTO Maruti Suzuki India Limited 6.80 Ashok Leyland Limited 1.77 Mahindra & Mahindra Limited 1.69 Eicher Motors Limited 1.18 CONSUMER NON DURABLES 8.70 Britannia Industries Limited 3.46 Hindustan Unilever Limited 3.19 Asian Paints Limited 2.05 SOFTWARE 7.99 Tata Consultancy Services Limited 5.50 Infosys Limited 1.51 Tech Mahindra Limited 0.98 AUTO ANCILLARIES 5.17 Motherson Sumi Systems Limited 2.04 Endurance Technologies Limited 1.83 MRF Limited 1.31 RETAILING 3.75 Avenue Supermarts Limited 3.75 TEXTILE PRODUCTS 2.92 Page Industries Limited 2.92 CONSTRUCTION PROJECT 2.48 Larsen & Toubro Limited 2.48 OTHERS 8.69 Chemicals 2.05 Pidilite Industries Limited 2.05 Pharmaceuticals 1.62 Divi's Laboratories Limited 1.10 Cadila Healthcare Limited 0.52 Petroleum Products 1.55 Reliance Industries Limited 1.55 Consumer Durables 1.01 Titan Company Limited 1.01 Cement 0.94 Shree Cements Limited 0.94 Non - Ferrous Metals 0.91 Hindalco Industries Limited 0.91 Telecom - Services 0.62 Bharti Airtel Limited 0.62 Total Equity Debt, Cash & Other Receivables Net Assets 100% ^Certificate of Deposit,Corporate Bond,Margin Fixed Deposit Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

8 AXIS FOCUSED 25 FUND (AN OPEN-ENDED EQUITY SCHEME) INVESTMENT OBJECTIVE: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. FUND STYLE Value 29th June , Cr. 3, Cr. Nifty 50 Investment Style Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard Deviation % Beta Sharpe Ratio** TURNOVER* (1 YEAR) 1.17 times Mr. Jinesh Gopani Work experience:16 years. 07th June 2016 % OF ASSETS FINANCE Bajaj Finance Limited 5.01 Bajaj Finserv Limited 4.87 Gruh Finance Limited 4.36 HDFC Limited 1.83 HDFC Standard Life Insurance Company Limited 2.38 Mas Financial Services Limited 1.00 Finance Cement 5.58 BANKS SECTOR ALLOCATION Banks Software Auto Ancillaries 8.55 Auto 5.90 Industrial Products 5.88 Chemicals 2.99 Pharmaceuticals Kotak Mahindra Bank Limited 7.85 HDFC Bank Limited 7.59 Bandhan Bank Limited 3.40 SOFTWARE Tata Consultancy Services Limited 6.70 MindTree Limited 3.56 Info Edge (India) Limited 2.99 AUTO ANCILLARIES 8.55 PERFORMANCE (as on 30th ) Motherson Sumi Systems Limited 3.68 WABCO India Limited 2.55 Current Value of `10,000 invested Endurance Technologies Limited 2.32 Date Period Scheme Returns NIFTY 50 S&P BSE 200 Scheme NIFTY 50 S&P BSE 200 AUTO 5.90 Maruti Suzuki India Limited 5.90 INDUSTRIAL PRODUCTS 5.88 Axis Focused 25 Fund - Growth 28-Apr-17 Last 1 Year 23.82% 16.91% 17.04% 12,382 11,691 11, Apr-15 Last 3 Years 17.59% 10.89% 12.83% 16,266 13,640 14, Apr-13 Last 5 Years 18.49% 14.03% 16.24% 23,367 19,286 21,230 Since Inception (29-June-12) 19.01% 14.28% 16.13% 27,620 21,803 23,948 Axis Focused 25 Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 25.27% 16.91% 17.04% 12,527 11,691 11, Apr-15 Last 3 Years 19.09% 10.89% 12.83% 16,896 13,640 14, Apr-13 Last 5 Years 19.98% 14.03% 16.24% 24,873 19,286 21,230 Since Inception (1-Jan-13) 18.99% 13.07% 14.71% 25,257 19,244 20,777 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated at `10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Jinesh Gopani is managing the scheme since 7th June 2016 and he manages 5 schemes of Axis Mutual Fund. Please refer to annexure on Page 32 for performance of all schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 18. s DIVIDENDS Record Date EXIT LOAD Mar 08, Feb 28, Dividend Mar 10, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. Data as on 30th April If redeemed / switched-out within 12 months from the date of allotment, For 10 % of investments: Nil, For remaining investments: 1%, If redeemed / switched - out after 12 months from the date of allotment:nil (w.e.f. 25th September 2017) **Risk-free rate assumed to be 6.00% (MIBOR as on ) - Source: Please note that as per AMFI guidelines for factsheet, the ratios are calculated based on month rolling returns (absolute) for last 3 years.data as on 30th April Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. 8 Supreme Industries Limited 5.88 CEMENT 5.58 Shree Cements Limited 5.58 CHEMICALS 2.99 Pidilite Industries Limited 2.99 PHARMACEUTICALS 2.85 Cadila Healthcare Limited 1.83 Sun Pharma Advanced Research Company Limited 1.01 OTHERS 7.96 Industrial Capital Goods 2.80 V-Guard Industries Limited 2.80 Retailing 2.70 Avenue Supermarts Limited 2.70 Textile Products 2.46 Page Industries Limited 2.46 Total Equity Debt, Cash & Other Receivables 8.75 Net Assets 100% ^Certificate of Deposit Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

9 AXIS MIDCAP FUND (AN OPEN-ENDED EQUITY SCHEME) INVESTMENT OBJECTIVE: To achieve long term capital appreciation by investing predominantly in equity and equity related instruments of mid size companies. The focus of the fund will be to invest in relatively larger companies within this category. FUND STYLE 18th February , Cr. 1, Cr. S&P BSE Midcap Investment Style Value Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard Deviation % Beta Sharpe Ratio** s Record Date SECTOR ALLOCATION Regular Plan EXIT LOAD TURNOVER* (1 YEAR) 0.94 times Finance Auto Ancillaries Industrial Products 9.12 Consumer Non Durables 8.34 Textile Products 4.99 PERFORMANCE (as on 30th ) Date Period Scheme Returns DIVIDENDS S&P BSE Midcap NIFTY 50 Mr. Shreyash Devalkar Work experience: 16 years. 23rd November 2016 Banks 4.97 Retailing 4.33 Industrial Capital 3.39 Goods Software Direct Plan Current Value of `10,000 invested Scheme S&P BSE Midcap NIFTY 50 Axis Midcap Fund - Growth 28-Apr-17 Last 1 Year 24.36% 15.91% 16.91% 12,436 11,591 11, Apr-15 Last 3 Years 13.23% 19.18% 10.89% 14,521 16,937 13, Apr-13 Last 5 Years 23.12% 23.46% 14.03% 28,308 28,696 19,286 Since Inception (18-Feb-11) 19.38% 15.48% 11.20% 35,810 28,181 21,482 Axis Midcap Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 25.79% 15.91% 16.91% 12,579 11,591 11, Apr-15 Last 3 Years 14.55% 19.18% 10.89% 15,037 16,937 13, Apr-13 Last 5 Years 24.63% 23.46% 14.03% 30,087 28,696 19,286 Since Inception (1-Jan-13) 21.21% 19.07% 13.07% 27,867 25,344 19,244 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Shreyash Devalkar is managing the scheme since 23rd November 2016 and he manages 5 schemes of Axis Mutual Fund. Please refer to annexure on Page 32 for performance of all schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 18. Oct 16, Dividend Sep 15, Sep 10, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. Data as on 30th April If redeemed / switched-out within 12 months from the date of allotment, For 10 % of investments: Nil, For remaining investments: 1%, If redeemed / switched - out after 12 months from the date of allotment:nil (w.e.f. 25th September 2017) **Risk-free rate assumed to be 6.00% (MIBOR as on ) - Source: Please note that as per AMFI guidelines for factsheet, the ratios are calculated based on month rolling returns (absolute) for last 3 years. Data as on 30th April Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. 9 % OF ASSETS FINANCE Gruh Finance Limited 7.53 Bajaj Finance Limited 4.85 Sundaram Finance Limited 4.25 Cholamandalam Investment and Finance Company Limited 4.12 Mahindra & Mahindra Financial Services Limited 2.80 Mas Financial Services Limited 1.28 AUTO ANCILLARIES Endurance Technologies Limited 3.74 Wabco India Limited 2.33 Balkrishna Industries Limited 2.14 MRF Limited 2.01 Motherson Sumi Systems Limited 1.49 INDUSTRIAL PRODUCTS 9.12 Supreme Industries Limited 4.36 Astral Poly Technik Limited 2.66 Schaeffler India Limited 2.10 CONSUMER NON DURABLES 8.34 Procter & Gamble Hygiene And Health Care Limited 3.67 Britannia Industries Limited 2.18 Kansai Nerolac Paints Limited 1.43 Jubilant Foodworks Limited 1.07 TEXTILE PRODUCTS 4.99 Page Industries Limited 4.99 BANKS 4.97 City Union Bank Limited 4.97 RETAILING 4.33 Avenue Supermarts Limited 2.91 Trent Limited 1.42 INDUSTRIAL CAPITAL GOODS 3.39 V-Guard Industries Limited 3.39 SOFTWARE 3.19 Info Edge (India) Limited 2.06 Mphasis Limited 1.13 OTHERS Chemicals 2.64 Tata Chemicals Limited 2.64 Construction Project 2.27 Voltas Limited 2.27 Consumer Durables 1.98 TTK Prestige Limited 1.98 Gas 1.87 Indraprastha Gas Limited 1.87 Pharmaceuticals 1.82 Divi's Laboratories Limited 1.82 Auto 1.31 Ashok Leyland Limited 1.31 Ferrous Metals 1.10 Shankara Building Products Limited 1.10 Transportation 0.99 Gujarat Pipavav Port Limited 0.99 Other Equity (less than 0.50% of the corpus) 0.81 Total Equity Debt, Cash & Other Receivables Net Assets 100% ^Certificate of Deposit Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

10 AXIS LONG TERM EQUITY FUND (AN OPEN-ENDED EQUITY LINKED SAVINGS SCHEME WITH A 3 YEAR LOCK-IN) INVESTMENT OBJECTIVE: 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. FUND STYLE 29th December , Cr. 17, Cr. S&P BSE 200 Investment Style Value Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard % Deviation Beta Sharpe Ratio** SECTOR ALLOCATION EXIT LOAD TURNOVER* (1 YEAR) 1.20 times Finance Banks Software 9.91 Auto 8.01 Auto Ancillaries 7.52 Chemicals 6.49 PERFORMANCE (as on 30th ) Date Period Scheme Returns S&P BSE 200 NIFTY 50 Mr. Jinesh Gopani Work experience: 16 years. 1st April 2011 Consumer 5.49 Durables Pharmaceuticals 4.65 Retailing Current Value of `10,000 invested Scheme S&P BSE 200 NIFTY 50 Axis Long Term Equity Fund - Growth 28-Apr-17 Last 1 Year 22.44% 17.04% 16.91% 12,244 11,704 11, Apr-15 Last 3 Years 13.23% 12.83% 10.89% 14,520 14,367 13, Apr-13 Last 5 Years 24.04% 16.24% 14.03% 29,380 21,230 19,286 Since Inception (29-Dec-09) 19.31% 11.30% 10.42% 43,583 24,418 22,860 Axis Long Term Equity Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 23.76% 17.04% 16.91% 12,376 11,704 11, Apr-15 Last 3 Years 14.47% 12.83% 10.89% 15,004 14,367 13, Apr-13 Last 5 Years 25.48% 16.24% 14.03% 31,125 21,230 19,286 Since Inception (1-Jan-13) 23.72% 14.71% 13.07% 31,082 20,777 19,244 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Jinesh Gopani is managing the scheme since 1st April 2011and he manages 5 schemes of Axis Mutual Fund. Please refer to annexure on Page 32 for performance of all schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 18. s Record Date DIVIDENDS Regular Plan Direct Plan Mar 22, Jan 31, Regular Jan 25, Dividend Jan 22, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. Data as on 30th April % OF ASSETS FINANCE HDFC Limited 6.65 Bajaj Finance Limited 4.84 Gruh Finance Limited 4.72 Sundaram Finance Limited 2.63 Multi Commodity Exchange of India Limited 0.75 BANKS Kotak Mahindra Bank Limited 7.12 HDFC Bank Limited 6.96 Bandhan Bank Limited 2.44 SOFTWARE 9.91 Tata Consultancy Services Limited 7.71 Info Edge (India) Limited 2.20 AUTO 8.01 Maruti Suzuki India Limited 4.74 Eicher Motors Limited 3.28 AUTO ANCILLARIES 7.52 Motherson Sumi Systems Limited 3.76 WABCO India Limited 2.33 Endurance Technologies Limited 1.42 CHEMICALS 6.49 Pidilite Industries Limited 6.49 CONSUMER DURABLES 5.49 TTK Prestige Limited 2.90 Symphony Limited 2.59 PHARMACEUTICALS 4.21 Sun Pharmaceutical Industries Limited 2.02 Cadila Healthcare Limited 1.43 Divi's Laboratories Limited 0.76 RETAILING 3.72 Avenue Supermarts Limited 3.72 OTHERS Power 2.96 Torrent Power Limited 2.96 Construction Project 2.94 Larsen & Toubro Limited 2.94 Pesticides 1.66 PI Industries Limited 1.66 Industrial Products 1.26 Astral Poly Technik Limited 1.26 Textile Products 0.93 Page Industries Limited 0.93 Industrial Capital Goods 0.89 V-Guard Industries Limited 0.89 Commercial Services 0.83 Quess Corp Limited 0.83 Consumer Non Durables 0.67 Nestle India Limited 0.67 Other Equity (less than 0.50% of the corpus) 2.13 Total Equity Debt, Cash & Other Receivables 4.26 Net Assets 100% ^Certificate of Deposit/Commercial Paper NIL **Risk-free rate assumed to be 6.00% (MIBOR as on ) - Source: Please note that as per AMFI guidelines for factsheet, the ratios are calculated based on month rolling returns (absolute) for last 3 years. Data as on 30th April Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. 10 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

11 AXIS MULTICAP FUND (AN OPEN-ENDED EQUITY SCHEME INVESTING ACROSS LARGE CAP, MID CAP, SMALL CAP STOCKS.) INVESTMENT OBJECTIVE: To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related struments across market capitalization. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. FUND STYLE 20th November , Cr. 2, Cr. S&P BSE 200 Index Investment Style Value Blend Growth Large Mid Small Market Cap SECTOR ALLOCATION EXIT LOAD Mr. Jinesh Gopani Work experience: 16 years. He has been managing the fund since inception. Banks Consumer Non Durables Auto Finance 9.37 Software 7.60 If redeemed / switched-out within 12 months from the date of allotment: 1%, If redeemed / switched - out after 12 months from the date of allotment: NIL Mr. Shreyash Devalkar Work experience: 16 years. inception. Since scheme have not completed one year, performance details for the same are not provided. Auto Ancillaries 5.46 Retailing 4.05 Chemicals 2.79 Textile Products Rating % OF ASSETS CORPORATE BOND HDFC Limited CRISIL AAA 1.63 Edelweiss Commodities Services Limited CRISIL AA 1.50 Rural Electrification Corporation Limited CRISIL AAA 1.41 National Highways Auth Of Ind CRISIL AAA 1.19 Piramal Finance Limited ICRA AA 1.02 ICICI Bank Limited ICRA AA ICICI Home Finance Company Limited ICRA AAA 1.00 Reliance Jio Infocomm Limited CRISIL AAA 0.89 Tata Sons Ltd CRISIL AAA 0.62 Edelweiss Commodities Services Limited ICRA AA 0.61 Allahabad Bank BWR A Allahabad Bank CARE A Cholamandalam Investment and Finance Company Limited IND AA LIC Housing Finance Limited CRISIL AAA 0.20 Power Finance Corporation Limited CRISIL AAA 0.41 Renew Power Venture Pvt Limited CARE A Tata Motors Limited CARE AA ZERO COUPON BOND 1.74 Tata Motors Finance Limited CARE AA TOTAL EQUITY BANKS HDFC Bank Limited 9.15 Kotak Mahindra Bank Limited 7.43 Bandhan Bank Limited 2.47 CONSUMER NON DURABLES Hindustan Unilever Limited 3.15 Asian Paints Limited 3.03 Britannia Industries Limited 1.94 Kansai Nerolac Paints Limited 1.92 Jubilant Foodworks Limited 1.04 AUTO Maruti Suzuki India Limited 6.86 Ashok Leyland Limited 3.16 FINANCE 9.37 Bajaj Finance Limited 6.37 Mas Financial Services Limited 1.00 Multi Commodity Exchange of India Limited 0.98 HDFC Limited 1.02 SOFTWARE 7.60 Tata Consultancy Services Limited 4.19 Infosys Limited 1.33 MphasiS Limited 1.12 Tech Mahindra Limited 0.96 AUTO ANCILLARIES 5.32 Motherson Sumi Systems Limited 3.19 MRF Limited 2.13 RETAILING 4.05 Avenue Supermarts Limited 4.05 CHEMICALS 2.79 Pidilite Industries Limited 2.79 TEXTILE PRODUCTS 2.23 Page Industries Limited 2.23 OTHERS Industrial Capital Goods 2.21 V-Guard Industries Limited 2.21 Pharmaceuticals 2.08 Divi's Laboratories Limited 2.08 Construction Project 2.01 Larsen & Toubro Limited 1.05 Voltas Limited 0.96 Ferrous Metals 1.20 Shankara Building Products Limited 1.20 Transportation 1.06 InterGlobe Aviation Limited 1.06 Non - Ferrous Metals 0.99 Hindalco Industries Limited 0.99 Consumer Durables 0.98 Titan Company Limited 0.98 Cement 0.90 Shree Cements Limited 0.90 Telecom - Services 0.55 Bharti Airtel Limited 0.55 Other Equity (less than 0.50% of the corpus) 0.26 Debt, Cash & Other Receivables 1.60 Net Assets 100% ^Certificate of Deposit 11 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

12 AXIS ENHANCED ARBITRAGE FUND (AN OPEN-ENDED ARBITRAGE FUND) INVESTMENT OBJECTIVE: 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. 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. 14th August 2014 s AVERAGE MATURITY*@ 192 days MODIFIED DURATION*@ 174 days YIELD (YIELD TO MATURITY & ) 7.78% TURNOVER # (1 YEAR) times DIVIDENDS Record Date EXIT LOAD 1, Cr. 2, Cr. Mr. Ashwin Patni Work experience: 16 years. He has been managing the fund since 27th April 2015 PERFORMANCE (as on 30th ) Date Period Scheme Returns Regular Plan CRISIL Liquid CRISIL 1 Year T-Bill Index CRISIL Liquid Mr. Devang Shah Work experience: 13 years. inception. Direct Plan Current Value of `10,000 invested Scheme Apr 19, Dividend Mar 22, Feb 27, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. 0.25% if redeemed / switched out within 7 days from the date of Based on debt portfolio only. * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. # Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/ SLB are not considered. CRISIL Liquid CRISIL 1 Year T-Bill Index Axis Enhanced Arbitrage Fund - Growth 28-Apr-17 Last 1 Year 5.90% 6.85% 6.13% 10,590 10,685 10, Apr-15 Last 3 Years 6.20% 7.29% 6.91% 11,979 12,354 12,222 Since Inception (14-Aug-14) 6.57% 7.58% 7.24% 12,666 13,118 12,962 Axis Enhanced Arbitrage Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 6.78% 6.85% 6.13% 10,678 10,685 10, Apr-15 Last 3 Years 7.08% 7.29% 6.91% 12,281 12,354 12,222 Since Inception (14-Aug-14) 7.47% 7.58% 7.24% 13,065 13,118 12,962 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated on ` 10 invested at inception. The performance data for 5 years period has not been provided for scheme/plan not in existence for 5 years. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above.devang Shah is managing the scheme since inception and he manages 43 schemes & Ashwin Patni is managing the scheme since 27th April 2015 and he manages 22 schemes. Please refer to annexure on Page 33 for performance of schemes managed by the fund managers. Returns greater than 1 year period are compounded annualised (CAGR). % OF ASSETS TOTAL HEDGED EQUITY Sun Pharmaceutical Industries Limited 6.02 The Federal Bank Limited 5.75 Mahindra & Mahindra Limited 5.35 Century Textiles & Industries Limited 3.15 Mahindra & Mahindra Financial Services Limited 3.14 Motherson Sumi Systems Limited 3.07 HDFC Limited 1.96 Dewan Housing Finance Corporation Limited 1.85 Indiabulls Housing Finance Limited 1.77 United Spirits Limited 1.59 Aurobindo Pharma Limited 1.51 Nestle India Limited 1.46 Maruti Suzuki India Limited 1.19 Torrent Power Limited 1.18 GMR Infrastructure Limited 1.03 Cummins India Limited 1.02 CESC Limited 1.00 Tata Steel Limited 0.97 Lupin Limited 0.93 ICICI Bank Limited 0.92 Jaiprakash Associates Limited 0.82 Capital First Limited 0.82 Tata Global Beverages Limited 0.80 Bharat Electronics Limited 0.77 Bajaj Auto Limited 0.66 Tata Motors Limited 0.59 Can Fin Homes Limited 0.57 Mahanagar Gas Limited 0.55 Suzlon Energy Limited 0.55 IRB Infrastructure Developers Limited 0.48 IDBI Bank Limited 0.47 Dr. Reddy's Laboratories Limited 0.47 PC Jeweller Limited 0.46 Wockhardt Limited 0.45 IDFC Bank Limited 0.44 TV18 Broadcast Limited 0.43 Tata Motors Limited 0.43 Jet Airways (India) Limited 0.41 Manappuram Finance Limited 0.39 Steel Authority of India Limited 0.38 DLF Limited 0.36 Reliance Capital Limited 0.34 Balrampur Chini Mills Limited 0.32 Bharat Heavy Electricals Limited 0.32 Hero MotoCorp Limited 0.32 The Karnataka Bank Limited 0.32 Escorts Limited 0.30 LIC Housing Finance Limited 0.29 Petronet LNG Limited 0.29 Punjab National Bank 0.26 Vedanta Limited 0.26 Jain Irrigation Systems Limited 0.24 NMDC Limited 0.24 Piramal Enterprises Limited 0.23 Shriram Transport Finance Company Limited 0.22 Divi's Laboratories Limited 0.21 Havells India Limited 0.21 GAIL (India) Limited 0.20 Arvind Limited 0.20 Ajanta Pharma Limited 0.19 Multi Commodity Exchange of India Limited 0.19 Tata Communications Limited 0.19 Bank of Baroda 0.18 Siemens Limited 0.17 L&T Finance Holdings Limited 0.16 NBCC (India) Limited 0.15 BEML Limited 0.15 RBL Bank Limited 0.15 Repco Home Finance Limited 0.15 Godfrey Phillips India Limited 0.15 Jindal Steel & Power Limited 0.14 Bajaj Finance Limited 0.13 Voltas Limited 0.12 PTC India Limited 0.12 Tata Elxsi Limited 0.12 CEAT Limited 0.11 The India Cements Limited 0.11 Reliance Infrastructure Limited 0.11 UPL Limited 0.11 Bank of India 0.10 Syndicate Bank 0.10 Shree Cements Limited 0.10 Tech Mahindra Limited 0.10 Indraprastha Gas Limited 0.09 Cadila Healthcare Limited 0.08 Adani Power Limited ~ 0.08 Union Bank of India 0.08 Indian Oil Corporation Limited 0.08 Muthoot Finance Limited 0.08 Engineers India Limited 0.07 Allahabad Bank 0.07 MRF Limited 0.06 Castrol India Limited 0.06 JSW Steel Limited 0.06 Oil & Natural Gas Corporation Limited 0.06 IFCI Limited 0.06 Britannia Industries Limited 0.04 Oriental Bank of Commerce 0.04 IDFC Limited 0.04 Ambuja Cements Limited 0.03 The South Indian Bank Limited 0.03 Hindalco Industries Limited 0.02 Andhra Bank 0.02 Rural Electrification Corporation Limited 0.02 Bharat Forge Limited 0.02 Bharat Financial Inclusion Limited 0.02 Hindustan Petroleum Corporation Limited 0.02 Biocon Limited 0.01 Exide Industries Limited 0.01 Idea Cellular Limited 0.01 Equitas Holdings Limited 0.01 Tata Chemicals Limited 0.01 ICICI Prudential Life Insurance Company Limited 0.01 Apollo Hospitals Enterprise Limited DEBT, CASH & OTHER RECEIVABLES NET ASSETS 100% 12 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

13 FIXED INCOME M A Y % 2.99% 6.25% 6.99% 10 yr G-Sec : Last 1 year 4.28% CPI Inflation : Last 1 year 6.00% Repo : Last 1 year QUICK TAKE The economy continues to stand on a solid macro foundation and political stability. Oil could play spoil sport. RBI is likely to keep rates stable for the remainder of the year. FPI participation in the d e b t m a r k e t s i s a sentimental positive to the rupee. Long bonds are likely to trade range bound. Short t e n o r b o n d s l o o k attractive from a risk reward perspective. We continue to advise investors to stay invested in short to medium term strategies and actively look at credit funds. Key Events During the Month Flip flop by RBI: The MPC left the key policy rates unchanged in its latest policy review. The tone of the policy however was mildly dovish on the back of the recent fall in headline CPI numbers. The tone does assign some upside risks on account of crude prices and food inflation. The policy minutes were much more hawkish in comparison, especially where one member of the MPC suggested switching from the neutral stance to beginning the process of withdrawal of accommodation Key announcements in the policy also included much needed relief for the banking sector with the deferment of IND AS and deferment in the counter cyclical buffer (CCB) aiding bank capital levels. The policy benchmark the repo rate remains at 6.0% and the reverse repo at 5.75%. Rising Crude A Cause for Worry: Crude prices have seen their highest levels in 4 years. WTI Brent crude ended the quarter at US$73.81/barrel. India being an oil importing nation is highly sensitive to movements in crude prices. Sustained high levels in crude oil is likely to impact budget calculations on the fiscal side and inflation management by the RBI. Inflation & IIP Gradual Recovery & Easing Prices: CPI inflation eased to 4.3% in March V/s 4.44% in February. Core inflation inched up marginally to 5.2%. IIP numbers in February continued to indicate a nascent recovery in the manufacturing sector. Depreciating Currency: The USD-INR depreciated to Rs66.5/US$ in April from Rs65.1/US$ in March on rising crude prices and ebbing foreign flows. Increasing FPI participation in Debt Markets: Foreign investors will be allowed to increase holdings by approx. Rs 1.05 lakh crore (US$ 16 billion) for the fiscal year to March 2019 as RBI increased FPI limits to G-Secs and domestic corporate bonds. Additionally, FPI`s are now permitted to invest in all tenors of G-Secs and corporate bonds with a minimum tenor of 1 year. Market View 10 YEAR G-SEC YIELD 7.77% Generally, we see the short term yields to rally and remain soft in April-June on account of easy liquidity condition and low corporate issuances, but this year we saw yields rising by as much as bps contrary to all expectations on account of a depreciating rupee and outflow of currency in circulation leading to tight banking liquidity. Long bond yields softened in the initial part of the month but gave up most gains due to an increase in SDL borrowing by Rs 40,000 Cr and hawkish RBI minutes. Concerns over rising oil prices is likely to have a bearing on interest rates. We continue to believe that the duration game has played out and investors should focus on short term funds. Structural liquidity (Government Cash Balances + LAF Balances) continues to be positive. We expect structural liquidity to remain in surplus to neutral zone for next 6 months. 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. As highlighted above, 1-3-year segment (short segment) is likely to see heightened activity with the RBI`s move of bringing foreign investors into the market. 1-3 year yields are currently trading at 200 basis over the operating rate. Yield curves across the spectrum have seen upward movements following the G-Sec trends. Ample liquidity and attractive spreads over the overnight rate still offers some opportunity. Hence 1-3-year space is likely to offer superior risk adjusted returns as compared to money market and ultra-short term funds. 13 Source: Bloomberg, Axis MF Research.

14 AXIS LIQUID FUND (AN OPEN-ENDED LIQUID SCHEME) INVESTMENT OBJECTIVE: 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. ^^ FUND STYLE 9th October , Cr. 24, Cr. CRISIL Liquid Internal Rate Sensitivity High Med Low High Mid Low Credit Quality Credit Risk Rating [ICRA] A1+mfs^ CARE AAA mfs^ AVERAGE MATURITY* 45 days MODIFIED DURATION* 42 days YIELD (YIELD TO MATURITY & ) 6.68% Total Money Market Instruments* % Corporate Bond % Mr. Devang Shah Work experience: 13 years. 5th November Mr. Aditya Pagaria Work experience: 11 years. 13th August COMPOSITION BY ASSETS COMPOSITION BY RATING * Includes Net Current Assets PERFORMANCE (as on 30th April 2018) Date Period Scheme Returns DIVIDENDS EXIT LOAD CARE A1+/ CRISIL A1+/ CRISIL A1+(SO)/ ICRA A1+/ IND A1+/ CARE AAA/ CRISIL AAA/ ICRA AAA/ IND A1+(SO) & Equivalent % SOV % CRISIL AA+/ ICRA AA+/ IND AA % CRISIL Liquid CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Liquid Regular Plan Retail Plan Direct Plan Dividend (` Per Dividend (` Per Dividend (` Per unit) unit) unit) s Record Date Apr 25, , , , , , , Monthly Mar 26, , , , , , , Dividend Feb 26, , , , , , , Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` Dividends disclosed above are since the inception of the fund. NIL * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held 14 till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. CRISIL 1 Year T-Bill Index Axis Liquid Fund - Growth 30-Apr-17 Last 1 Year 6.86% 6.85% 6.13% 10,686 10,685 10, Apr-15 Last 3 Years 7.38% 7.29% 6.91% 12,384 12,354 12, Apr-13 Last 5 Years 8.08% 8.05% 6.97% 14,753 14,730 14,008 Since Inception (9-Oct-09) 7.99% 7.63% 6.51% 19,316 18,774 17,157 Axis Liquid Fund - Direct Plan - Growth 30-Apr-17 Last 1 Year 6.92% 6.85% 6.13% 10,692 10,685 10, Apr-15 Last 3 Years 7.45% 7.29% 6.91% 12,410 12,354 12, Apr-13 Last 5 Years 8.16% 8.05% 6.97% 14,803 14,730 14,008 Since Inception (31-Dec-12) 8.21% 8.07% 7.10% 15,228 15,122 14,418 Axis Liquid Fund - Retail Plan - Growth 30-Apr-17 Last 1 Year 6.25% 6.85% 6.13% 10,625 10,685 10, Apr-15 Last 3 Years 6.80% 7.29% 6.91% 12,185 12,354 12, Apr-13 Last 5 Years 7.52% 8.05% 6.97% 14,371 14,730 14,008 Since Inception (1-Mar-10) 7.70% 7.87% 6.70% 18,331 18,564 16,986 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated on ` 1,000 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since 5th November 2012 and he manages 43 schemes & Aditya Pagaria is managing the scheme since 13th August 2016 and he manages 4 schemes. Please refer to annexure on Page for performance of schemes managed by the fund managers. Returns greater than 1 year period are compounded annualised (CAGR). RATING % OF ASSETS TOTAL MONEY MARKET INSTRUMENTS^ BANKS IDFC Bank Limited ICRA A The South Indian Bank Limited CARE A ICICI Bank Limited ICRA A Vijaya Bank CARE A Kotak Mahindra Bank Limited CRISIL A Bandhan Bank Limited ICRA A Yes Bank Limited ICRA A Union Bank of India ICRA A HDFC Bank Limited CARE A RBL Bank Limited ICRA A Abu Dhabi Commercial Bank PJSC CRISIL A Citibank N.A. CRISIL A RBL Bank Limited ICRA A OTHERS Reliance Jio Infocomm Limited CRISIL A Dewan Housing Finance Corporation Limited CRISIL A Tata Capital Financial Services Limited CRISIL A Edelweiss Commodities Services Limited CRISIL A Chennai Petroleum Corporation Limited CRISIL A Reliance Industries Limited CRISIL A Gruh Finance Limited CRISIL A NABARD ICRA A Indiabulls Housing Finance Limited CRISIL A HDFC Limited CRISIL A Tata Steel Limited ICRA A Indus Towers Limited CRISIL A LIC Housing Finance Limited CRISIL A Sun Pharmaceutical Industries Limited ICRA A Export Import Bank of India CRISIL A India Infoline Limited CRISIL A India Infoline Finance Limited CRISIL A Grasim Industries Limited CRISIL A Aditya Birla Finance Limited ICRA A Vedanta Limited CRISIL A Tata Motors Finance Limited ICRA A Indiabulls Commercial Credit Limited CRISIL A TVS Credit Services Limited CRISIL A Piramal Finance Limited ICRA A Tata Motors Limited ICRA A Redington (India) Limited CRISIL A Magma Fincorp Limited CRISIL A HDB Financial Services Limited CRISIL A Network18 Media & Investments Limited ICRA A Piramal Housing Finance Limited ICRA A Emami Limited CRISIL A Small Industries Dev Bank of India CARE A Hinduja Leyland Finance Limited CRISIL A National Housing Bank CRISIL A Reliance Retail Ltd CRISIL A Infina Finance Private Limited CRISIL A Mahindra Rural Housing Finance IND A Talwandi Sabo Power Limited CRISIL A1+(SO) 0.62 Bharti Telecom Limited CRISIL A JSW Steel Limited CARE A Sundaram BNP Paribas Home Finance Limited ICRA A Adani Transmission Limited ICRA A Turquoise Invest & Finance Pvt Limited CRISIL A T V Sundram Iyengar & Sons Pvt Ltd ICRA A Mahindra & Mahindra Financial Services Limited CRISIL A Housing Development Finance Corporation Limited ICRA A CESC Limited ICRA A Trapti Trading & Invest Pvt Limited ICRA A Hinduja Leyland Finance Limited ICRA A L&T Infrastructure Finance Company Limited ICRA A SRF Limited CRISIL A TV18 Broadcast Limited ICRA A Tube Investments of India Limited ICRA A IDFC Infrastructure Finance Limited ICRA A JM Financial Services Limited ICRA A Varroc Engineering Pvt Limited ICRA A Shapoorji Pallonji and Company Pvt Limited ICRA A L&T Housing Finance ICRA A NABARD CRISIL A IndoStar Capital Finance Limited CRISIL A JM Financial Products Limited ICRA A Tata Motors Finance Limited CARE A Piramal Enterprises Limited ICRA A Tata Capital Housing Finance Limited CRISIL A Hero Fincorp Limited CRISIL A Kotak Securities Limited ICRA A India Infoline Finance Limited ICRA A Bajaj Finance Limited ICRA A Vedanta Limited IND A Walwhan Renewable Energy Limited IND A1+(SO) 0.02 Edelweiss Commodities Services Limited ICRA A TGS Investment & Trade Pvt Limited ICRA A TREASURY BILL Days Tbill Sovereign Days Tbill Sovereign Days Tbill Sovereign 0.82 TOTAL DEBT 3.21 CORPORATE BOND 3.21 Power Finance Corporation Limited CRISIL AAA 1.38 Dewan Housing Finance Corporation Limited CARE AAA 0.84 Adani Transmission Limited IND AA Tata Capital Financial Services Limited CRISIL AA Sundaram Finance Limited ICRA AAA 0.21 Cholamandalam Investment and Finance Company Limited ICRA AA HDFC Limited CRISIL AAA 0.02 NET CURRENT ASSETS NET ASSETS 100% ^Certificate of Deposit/Commercial Paper/BRDS/Treasury Bill Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

15 AXIS TREASURY ADVANTAGE FUND (AN OPEN-ENDED DEBT SCHEME) INVESTMENT OBJECTIVE: 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. FUND STYLE 9th October , Cr. 2, Cr. CRISIL Liquid Internal Rate Sensitivity High Med Low High Mid Low Credit Quality Credit Risk Rating [ICRA] A1+mfs^ AVERAGE MATURITY * 265 days MODIFIED DURATION * 236 days YIELD (YIELD TO MATURITY & ) 7.80% Total Money Market Instruments* % Corporate Bond % Zero Coupon Bond % Pass Through Certificate % * Includes Net Current Assets Mr. Devang Shah Work experience: 13 years. 07th June Mr. Aditya Pagaria Work experience: 11 years. 13th August COMPOSITION BY ASSETS COMPOSITION BY RATING PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns DIVIDENDS CARE A1+/ CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ ICRA AAA(SO)/ IND AAA & Equivalent % CRISIL AA/ ICRA AA % CARE AA-/ICRA AA-/ IND AA % BWR AA+/ ICRA AA+/ IND AA % CRISIL Liquid CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Liquid CRISIL 1 Year T-Bill Index Axis Treasury Advantage Fund - Growth 28-Apr-17 Last 1 Year 6.42% 6.83% 6.11% 10,642 10,683 10, Apr-15 Last 3 Years 7.53% 7.29% 6.91% 12,430 12,347 12, Apr-13 Last 5 Years 8.11% 8.05% 6.97% 14,764 14,722 14,001 Since Inception (9-Oct-09) 8.07% 7.64% 6.51% 19,415 18,764 17,148 Axis Treasury Advantage Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 7.06% 6.83% 6.11% 10,706 10,683 10, Apr-15 Last 3 Years 8.01% 7.29% 6.91% 12,597 12,347 12, Apr-13 Last 5 Years 8.60% 8.05% 6.97% 15,099 14,722 14,001 Since Inception (1-Jan-13) 8.65% 8.07% 7.10% 15,549 15,111 14,405 Axis Treasury Advantage Fund - Retail Plan - Growth 28-Apr-17 Last 1 Year 5.95% 6.83% 6.11% 10,595 10,683 10, Apr-15 Last 3 Years 6.92% 7.29% 6.91% 12,220 12,347 12, Apr-13 Last 5 Years 7.43% 8.05% 6.97% 14,304 14,722 14,001 Since Inception (3-Mar-10) 7.60% 7.86% 6.70% 18,169 18,542 16,975 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated on ` 1,000 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since 7th June 2016 and he manages 43 schemes & Aditya Pagaria is managing the scheme since 13th August 2016 and he manages 4 schemes. Please refer to annexure on for performance of schemes managed by the fund managers. Returns greater than 1 year period are compounded annualised (CAGR). Regular Plan Retail Plan Direct Plan Dividend (` Per Dividend (` Per Dividend (` Per unit) unit) unit) s Record Date Apr 25, , , , , , , Monthly Mar 26, , , , , , , Dividend Feb 26, , , , , , , Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` Dividends disclosed above are since the inception of the fund. RATING % OF ASSETS TOTAL MONEY MARKET INSTRUMENTS^ BANKS IndusInd Bank Limited CRISIL A HDFC Bank Limited CARE A Yes Bank Limited ICRA A IDFC Bank Limited ICRA A ICICI Bank Limited ICRA A OTHERS NABARD ICRA A HDFC Limited CRISIL A HDFC Limited ICRA A Indiabulls Housing Finance Limited CRISIL A Reliance Industries Limited CRISIL A IndoStar Capital Finance Limited CRISIL A Rural Electrification Corporation Limited CRISIL A L&T Infrastructure Finance Company Limited ICRA A Tata Power Company Limited ICRA A PASS THROUGH CERTIFICATE 0.53 Sansar Trust ICRA AAA(SO) 0.53 TOTAL DEBT CORPORATE BOND Reliance Jio Infocomm Limited CRISIL AAA 6.10 NABARD CRISIL AAA 5.29 Power Finance Corporation Limited CRISIL AAA 4.10 Piramal Finance Limited ICRA AA 3.43 Rural Electrification Corporation Limited CRISIL AAA 2.72 Edelweiss Commodities Services Limited CRISIL AA 2.56 Hinduja Leyland Finance Limited CARE AA Indian Railway Finance Corporation Limited CRISIL AAA 1.71 JM Financial Products Limited CRISIL AA 1.37 Daimler Financial Services India Pvt Limited IND AAA 1.37 Indiabulls Housing Finance Limited BWR AAA 1.25 IndoStar Capital Finance Limited CARE AA Muthoot Finance Limited CRISIL AA 1.10 India Infoline Finance Limited ICRA AA 1.03 HDFC Limited CRISIL AAA 0.89 LIC Housing Finance Limited CRISIL AAA 0.86 Nuvoco Vistas Corporation Limited CRISIL AA 0.86 Mahindra Rural Housing Finance IND AA Tata Motors Finance Limited CRISIL AA 0.85 Magma Fincorp Limited ICRA AA UPL Limited BWR AA IndoStar Capital Finance Limited IND AA Small Industries Dev Bank of India CARE AAA 0.07 ZERO COUPON BOND 7.25 Dewan Housing Finance Corporation Limited CARE AAA 5.28 TMF Holdings Limited CRISIL AA 0.95 Sundaram BNP Paribas Home Finance Limited ICRA AA JM Financial Products Limited CRISIL AA 0.46 NET CURRENT ASSETS 7.05 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper EXIT LOAD NIL * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 15 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

16 AXIS SHORT TERM FUND (AN OPEN-ENDED DEBT SCHEME) INVESTMENT OBJECTIVE: 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. FUND STYLE 22nd January , Cr. 5, Cr. CRISIL Short Term Bond Fund Index Internal Rate Sensitivity High Med Low High Mid Low Credit Quality Credit Risk Rating [ICRA]AAAmfs $ AVERAGE MATURITY * 1.8 years MODIFIED DURATION * 1.5 years YIELD (YIELD TO MATURITY & ) 8.05% Corporate Bond % Total Money Market Instruments* % Government Bond % State Government Bond % Zero Coupon Bond % * Includes Net Current Assets Mr. Devang Shah Work experience: 13 years. 5th November COMPOSITION BY ASSETS COMPOSITION BY RATING PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns DIVIDENDS EXIT LOAD CARE A1+/ CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ CRISIL AAA(SO)/ ICRA AAA/ IND AAA & Equivalent % SOV % BWR AA+/ CARE AA+/ CRISIL AA+/ ICRA AA+/ IND AA % CRISIL AA % CRISIL Short Term Bond CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Short Term Bond Regular Plan Retail Plan Direct Plan CRISIL 1 Year T-Bill Index Benchmark Returns) Axis Short Term Fund - Growth 28-Apr-17 Last 1 Year 5.45% 5.52% 6.11% 10,545 10,552 10, Apr-15 Last 3 Years 7.44% 7.62% 6.91% 12,398 12,460 12, Apr-13 Last 5 Years 7.81% 8.28% 6.97% 14,558 14,876 14,001 Since Inception (22-Jan-10) 7.95% 7.96% 6.64% 18,819 18,832 17,016 Axis Short Term Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 6.19% 5.52% 6.11% 10,619 10,552 10, Apr-15 Last 3 Years 8.25% 7.62% 6.91% 12,678 12,460 12, Apr-13 Last 5 Years 8.66% 8.28% 6.97% 15,138 14,876 14,001 Since Inception (1-Jan-13) 8.81% 8.37% 7.10% 15,668 15,338 14,405 Axis Short Term Fund - Retail Plan - Growth 28-Apr-17 Last 1 Year 5.46% 5.52% 6.11% 10,546 10,552 10, Apr-15 Last 3 Years 7.44% 7.62% 6.91% 12,398 12,460 12, Apr-13 Last 5 Years 7.82% 8.28% 6.97% 14,564 14,876 14,001 Since Inception (2-Mar-10) 7.91% 8.04% 6.70% 18,606 18,794 16,975 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since 5th November 2012 and he manages 43 schemes of Axis Mutual Fund. Please refer to annexure on Page 33 for performance of schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). s Record Date Apr 25, Monthly Mar 26, Dividend Feb 26, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Power Finance Corporation Limited CRISIL AAA HDFC Limited CRISIL AAA 7.69 Small Industries Dev Bank of India CARE AAA 5.25 Reliance Jio Infocomm Limited CRISIL AAA 3.87 NABARD CRISIL AAA 3.82 LIC Housing Finance Limited CRISIL AAA 3.76 Rural Electrification Corporation Limited CRISIL AAA 3.42 Tata Sons Ltd CRISIL AAA 2.94 Power Grid Corporation of India Limited CRISIL AAA 2.42 Indiabulls Housing Finance Limited BWR AAA 1.93 NABARD IND AAA 1.82 Cholamandalam Investment and Finance Company Limited ICRA AA Mahindra & Mahindra Financial Services Limited IND AAA 1.38 Indian Railway Finance Corporation Limited CRISIL AAA 1.30 HDB Financial Services Limited CRISIL AAA 1.30 Tata Capital Financial Services Limited CRISIL AA Reliance Utilities & Power Pvt Limited CRISIL AAA 1.23 Vodafone Mobile Services Limited CRISIL AA 1.21 NHPC Limited ICRA AAA 0.98 Tata Motors Limited CARE AA L&T Housing Finance CARE AAA 0.86 Dewan Housing Finance Corporation Limited CARE AAA 0.81 Muthoot Finance Limited CRISIL AA 0.69 Gruh Finance Limited CRISIL AAA 0.68 Nirma Limited CRISIL AA 0.65 Dewan Housing Finance Corporation Limited BWR AAA 0.61 IDFC Bank Limited ICRA AAA 0.61 Oriental Nagpur Betul Highway Limited CRISIL AAA(SO) 0.60 Tata Capital Financial Services Limited ICRA AA Daimler Financial Services India Pvt Limited IND AAA 0.43 LIC Housing Finance Limited CARE AAA 0.43 Mahindra Rural Housing Finance CRISIL AA UPL Limited BWR AA Indiabulls Housing Finance Limited ICRA AAA 0.35 Reliance Industries Limited CRISIL AAA 0.33 L&T Infrastructure Finance Company Limited CARE AAA 0.26 National Highways Auth Of Ind CRISIL AAA 0.25 Bajaj Finance Limited CARE AAA 0.19 Tube Investments of India Limited CRISIL AA 0.17 Bhopal Dhule Transmission Company Limited CRISIL AAA 0.17 Indiabulls Housing Finance Limited CARE AAA 0.09 Mahindra Rural Housing Finance IND AA Bharti Airtel Limited CRISIL AA GOVERNMENT BOND Sovereign 4.69 STATE GOVERNMENT BOND Sovereign 2.80 ZERO COUPON BOND 2.45 Dewan Housing Finance Corporation Limited CARE AAA 1.91 Aditya Birla Fashion and Retail Limited CRISIL AA 0.31 Mahindra & Mahindra Financial Services Limited IND AAA 0.21 Axis Finance Limited IND AAA 0.02 HDB Financial Services Limited CRISIL AAA TOTAL MONEY MARKET INSTRUMENTS^ BANKS IndusInd Bank Limited CRISIL A ICICI Bank Limited ICRA A IDFC Bank Limited ICRA A Yes Bank Limited ICRA A HDFC Bank Limited CARE A OTHERS 6.21 NABARD ICRA A Adani Ports and Special Economic Zone Limited ICRA A IDFC Infrastructure Finance Limited ICRA A HDFC Limited ICRA A HDFC Limited CRISIL A Dewan Housing Finance Corporation Limited CRISIL A NET CURRENT ASSETS 2.06 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper NIL * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 16 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

17 AXIS DYNAMIC BOND FUND (AN OPEN-ENDED DEBT FUND) INVESTMENT OBJECTIVE: To generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments. FUND STYLE 27th April Cr Cr. CRISIL Composite Bond Internal Rate Sensitivity High Med Low High Mid Low Credit Quality AVERAGE MATURITY* 2.4 years MODIFIED DURATION* 1.8 years YIELD (YIELD TO MATURITY & ) 7.92% Mr. R. Sivakumar Work experience: 19 years. inception Mr. Devang Shah Work experience: 13 years. 5th November RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Reliance Jio Infocomm Limited CRISIL AAA 8.90 Allahabad Bank CARE A Syndicate Bank IND AA Union Bank of India BWR AA 4.88 Punjab National Bank BWR AA 4.87 Renew Power Venture Pvt Limited CARE A COMPOSITION BY ASSETS COMPOSITION BY RATING Total Money Market Instruments* % CRISIL A1+/ CRISIL AAA/ CRISIL AAA(SO)/ ICRA AAA(SO) & Corporate Bond % Equivalent % SOV % BWR AA % Pass Through Certificate % Government Bond % BWR A+(SO)/ CARE A+/ ICRA A+(SO) % CRISIL State Government Bond % AA-/ IND AA % IND A(SO) % Reduced Face Value Bonds - Non Amortisation % * Includes Net Current Assets PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns CRISIL Composite Bond CRISIL 10 year Gilt Index Current Value of `10,000 invested Scheme CRISIL Composite Bond CRISIL 10 year Gilt Index Axis Dynamic Bond Fund - Growth 28-Apr-17 Last 1 Year 3.51% 3.69% -1.01% 10,351 10,369 9, Apr-15 Last 3 Years 7.09% 7.57% 5.74% 12,278 12,442 11, Apr-13 Last 5 Years 7.59% 7.87% 5.59% 14,414 14,596 13,121 Since Inception (27-Apr-11) 8.32% 8.31% 6.38% 17,506 17,492 15,420 Axis Dynamic Bond Fund - Direct Plan -Growth 28-Apr-17 Last 1 Year 4.42% 3.69% -1.01% 10,442 10,369 9, Apr-15 Last 3 Years 8.17% 7.57% 5.74% 12,651 12,442 11, Apr-13 Last 5 Years 8.83% 7.87% 5.59% 15,259 14,596 13,121 Since Inception (1-Jan-13) 9.18% 8.17% 6.07% 15,954 15,188 13,686 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 10 invested at inception. Calculations are based on Growth. 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. R. Sivakumar is managing the scheme since inception and he manages 6 schemes & Devang Shah is managing the schmes since 5th November 2012 and he manages 43 schemes. Please refer to annexure on Page 32&33 for performance of schemes managed by the fund managers. Returns greater than 1 year period are compounded annualised (CAGR). Tata Power Company Limited CRISIL AA India Infrastructure Fin Co Ltd CRISIL AAA 1.24 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 0.45 GOVERNMENT BOND Sovereign 5.79 STATE GOVERNMENT BOND Sovereign 4.73 REDUCED FACE VALUE BONDS - NON AMORTISATION 1.19 Ess Kay Fincorp Limited IND A(SO) 1.19 TOTAL MONEY MARKET INSTRUMENTS^ BANKS IndusInd Bank Limited CRISIL A PASS THROUGH CERTIFICATE Sansar Trust IIERT TRUST ICRA AAA(SO) CRISIL AAA(SO) Solstice Trust ICRA A+(SO) 1.18 NET CURRENT ASSETS NET ASSETS 100% ^Certificate of Deposit DIVIDENDS s Record Date Regular Plan Direct Plan Mar 26, Sep 25, Half Yearly Dividend Mar 27, Sep 26, Mar 26, Quarterly Dividend Dec 26, Sep 25, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Half Yearly Dividends disclosed above are for the last 2 Years. Quarterly Dividends disclosed above are for the last 3 quarters. * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 17 NIL EXIT LOAD (w.e.f. 10th November 2017) Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

18 AXIS CORPORATE DEBT OPPORTUNITIES FUND (AN OPEN-ENDED DEBT FUND) INVESTMENT OBJECTIVE: The Scheme seeks to provide steady income and capital appreciation by investing in corporate debt. There is no assurance or guarantee that the objectives of the Scheme will be realized. FUND STYLE 13th July Cr Cr. CRISIL Short Term Bond Internal Rate Sensitivity High Med Low High Mid Low Credit Quality AVERAGE MATURITY* 364 days MODIFIED DURATION* 321 days YIELD (YIELD TO MATURITY & ) 8.53% Mr. Devang Shah Work experience: 13 years. 13th July RATING % OF ASSETS TOTAL DEBT CORPORATE BOND UPL Limited BWR AA Small Industries Dev Bank of India CARE AAA 7.21 Dewan Housing Finance Corporation Limited BWR AAA 6.50 Reliance Utilities & Power Pvt Limited CRISIL AAA 4.99 Piramal Finance Limited ICRA AA 4.69 Indiabulls Housing Finance Limited BWR AAA 3.61 India Infoline Finance Limited ICRA AA 3.61 COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ CRISIL Total Money Market Instruments* % AAA(SO)/ ICRA AAA(SO) & Equivalent % CRISIL AA/ ICRA Zero Coupon Bond % Pass Through Certificate % AA/ BWR AA % BWR AA-(SO)/ CARE AA-/ ICRA AA-/ IND AA % BWR AA+/CRISIL AA % BWR A+(SO)/ CARE Reduced Face Value Bonds - Non A % IND A(SO) % Amortisation % * Includes Net Current Assets NIL s Monthly Dividend DIVIDENDS Record Date EXIT LOAD Regular Plan Direct Plan Apr 25, Mar 26, Feb 26, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund.. Since scheme have not completed one year, performance details for the same are not provided. * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio HDFC Limited CRISIL AAA 3.61 Oriental Nagpur Betul Highway CRISIL Limited AAA(SO) 3.61 Edelweiss Commodities Services Limited CRISIL AA 3.58 Renew Power Venture Pvt Limited CARE A Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 2.15 Syndicate Bank IND AA Magma Fincorp Limited ICRA AA Punjab National Bank BWR AA 1.76 Hinduja Leyland Finance Limited CARE AA Bharti Airtel Limited CRISIL AA ZERO COUPON BOND 5.57 Sprit Textile Pvt Limited BWR AA-(SO) 3.83 JM Financial Products Limited CRISIL AA 1.73 REDUCED FACE VALUE BONDS - NON AMORTISATION 0.94 Ess Kay Fincorp Limited IND A(SO) 0.94 TOTAL MONEY MARKET INSTRUMENTS^ OTHERS Adani Ports and Special Economic Zone Limited ICRA A Northern Arc Capital Limited ICRA A Indiabulls Housing Finance Limited CRISIL A BANKS Yes Bank Limited ICRA A IndusInd Bank Limited CRISIL A PASS THROUGH CERTIFICATE 4.83 IIERT TRUST CRISIL AAA(SO) 2.44 Sansar Trust ICRA AAA(SO) 1.28 MFL Securitisation Trust CRISIL AAA(SO) 1.11 NET CURRENT ASSETS 3.01 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper 18 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

19 AXIS REGULAR SAVINGS FUND (AN OPEN-ENDED DEBT SCHEME) INVESTMENT OBJECTIVE: To generate optimal returns in the medium term while maintaining liquidity of the portfolio by investing in debt and money market instruments. FUND STYLE 28th March , Cr. 1, Cr. CRISIL Composite Bond Internal Rate Sensitivity High Med Low High Mid Low Credit Quality AVERAGE MATURITY * 2.4 years MODIFIED DURATION * 1.9 years YIELD (YIELD TO MATURITY & ) 9.01% s Record Date Mr. Devang Shah Work experience: 13 years. 5th November Regular Plan COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ CRISIL Pass Through Certificate % AAA(SO)/ ICRA AAA/ ICRA AAA(SO) & Equivalent % CARE AA/ CARE Total Money Market Instruments*- 4.82% Zero Coupon Bond % AA(SO)/ CRISIL AA/ ICRA AA/ IND AA/ BWR AA % BWR AA-(SO)/ Reduced Face Value Bonds - Non Amortisation % CARE AA-/ CRISIL AA-/ ICRA AA-/ IND AA % BWR A+(SO)/ CARE Government Bond % A+/ ICRA A+/ ICRA A+(SO)/ CARE A+(SO)- 9.87% CRISIL AA+/ ICRA State Government Bond % AA+/ IND AA % SOV % IND A(SO) % * Includes Net Current Assets BWR A % PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns DIVIDENDS CRISIL Composite Bond CRISIL 10 year Gilt Index Benchmark Returns) Current Value of `10,000 invested Scheme CRISIL Composite Bond Direct Plan CRISIL 10 year Gilt Index Axis Regular Savings Fund - Growth 28-Apr-17 Last 1 Year 6.69% 3.69% -1.01% 10,669 10,369 9, Apr-15 Last 3 Years 8.25% 7.57% 5.74% 12,680 12,442 11, Apr-13 Last 5 Years 8.51% 7.87% 5.59% 15,038 14,596 13,121 Since Inception (28-Mar-12) 9.00% 8.37% 6.83% 16,893 16,307 14,951 Axis Regular Savings Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 7.42% 3.69% -1.01% 10,742 10,369 9, Apr-15 Last 3 Years 9.15% 7.57% 5.74% 12,999 12,442 11, Apr-13 Last 5 Years 9.47% 7.87% 5.59% 15,714 14,596 13,121 Since Inception (7-Jan-13) 9.63% 8.11% 5.95% 16,283 15,123 13,585 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since 5th November 2012 and he manages 43 schemes of Axis Mutual Fund. Please refer to annexure on Page 33 for performance of schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). Half Yearly Dividend Mar 26, Sep 25, Mar 27, Sep 26, Quarterly Dividend Mar 26, Dec 26, Sep 25, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Half yearly dividend disclosed above are since the inception of the fund. Quarterly dividends disclosed above are for the last 3 Quarters. * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 19 RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Reliance Jio Infocomm Limited CRISIL AAA 4.02 Dewan Housing Finance Corporation Limited BWR AAA 3.88 Indiabulls Housing Finance Limited BWR AAA 3.81 Nuvoco Vistas Corporation Limited CRISIL AA 3.17 Rural Electrification Corporation Limited CRISIL AAA 3.02 Bharti Airtel Limited CRISIL AA Oriental Nagpur Betul Highway Limited CRISIL AAA(SO) 2.84 IndoStar Capital Finance Limited CARE AA PVR Limited CRISIL AA Tube Investments of India Limited CRISIL AA 2.77 ICICI Bank Limited ICRA AA Tata Power Company Limited IND AA 2.07 Bhopal Dhule Transmission Company Limited CRISIL AAA 2.06 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 1.96 Power Finance Corporation Limited CRISIL AAA 1.88 Muthoot Finance Limited CRISIL AA 1.82 Edelweiss Commodities Services Limited ICRA AA 1.76 Renew Power Venture Pvt Limited CARE A Vedanta Limited CRISIL AA 1.75 JK Lakshmi Cement Limited CARE AA 1.75 HDFC Limited CRISIL AAA 1.74 Indian Railway Finance Corporation Limited CRISIL AAA 1.74 Punjab National Bank BWR AA 1.65 Bank of Baroda CARE AA 1.61 Union Bank of India BWR AA 1.58 Vijaya Bank ICRA AA Piramal Enterprises Limited ICRA AA 1.54 Northern Arc Capital Limited ICRA A Syndicate Bank IND AA Birla Corporation Limited ICRA AA 1.26 Magma Fincorp Limited ICRA AA Adani Transmission Limited IND AA Dalmia Cement (Bharat) Limited ICRA AA 1.05 Hinduja Leyland Finance Limited CARE AA JM Financial Products Limited CRISIL AA 0.98 Edelweiss Commodities Services Limited CRISIL AA 0.91 Nirma Limited CRISIL AA 0.83 Allahabad Bank CARE A Mahindra Rural Housing Finance IND AA Gruh Finance Limited CRISIL AAA 0.69 Tata Power Company Limited CRISIL AA Vodafone Mobile Services Limited CRISIL AA 0.62 East West Pipeline Limited CRISIL AAA 0.61 Hindalco Industries Limited CRISIL AA 0.51 Hansdeep Industries & Trading Company Limited CARE AA(SO) 0.51 ECL Finance Limited ICRA AA 0.35 Equitas Small Finance Bank Limited CARE A Indiabulls Housing Finance Limited ICRA AAA 0.35 JM Financial Products Limited ICRA AA 0.35 Tata Power Company Limited ICRA AA Allahabad Bank BWR A Piramal Finance Limited ICRA AA 0.14 ZERO COUPON BOND 4.43 Aditya Birla Fashion and Retail Limited CRISIL AA 1.25 Dewan Housing Finance Corporation Limited CARE AAA 0.98 Sprit Textile Pvt Limited BWR AA-(SO) 0.97 Amri Hospitals Limited ## BWR A+(SO) 0.82 Edelweiss Commodities Services Limited CARE AA 0.41 REDUCED FACE VALUE BONDS - NON AMORTISATION 2.15 Subros Limited ICRA A Narmada Wind Energy Private Limited CARE A+(SO) 0.70 Ess Kay Fincorp Limited IND A(SO) 0.61 GOVERNMENT BOND Sovereign 0.40 STATE GOVERNMENT BOND Sovereign 0.28 PASS THROUGH CERTIFICATE 7.64 Sansar Trust ICRA AAA(SO) 3.14 IIERT TRUST CRISIL AAA(SO) 1.76 MFL SECURITISATION TRUST CRISIL AAA(SO) 1.39 Solstice Trust ICRA A+(SO) 1.34 TOTAL MONEY MARKET INSTRUMENTS^ 1.99 BANKS 1.65 Yes Bank Limited ICRA A IndusInd Bank Limited CRISIL A OTHERS 0.34 HDFC Limited ICRA A NET CURRENT ASSETS 2.83 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper/ ## Secured by shares of Zee Entertainment Enterprises Ltd EXIT LOAD If redeemed / switched-out within 12 months from the date of allotment For 10% of investment : Nil For remaining investment : 1% If redeemed/switched out after 12 months from the date of allotment : Nil (w.e.f. 30th June 2016) Note: The scheme was reanamed earlier known as Axis Income Fund and was renamed w.e.f. April 10, Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

20 AXIS FIXED INCOME OPPORTUNITIES FUND (AN OPEN-ENDED DEBT SCHEME) INVESTMENT OBJECTIVE: 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. FUND STYLE 15th July , Cr. 1, Cr. CRISIL Short Term Bond Internal Rate Sensitivity High Med Low High Mid Low Credit Quality AVERAGE MATURITY * 2.4 years MODIFIED DURATION * 1.9 years YIELD (YIELD TO MATURITY & ) 9.01% Mr. Devang Shah Work experience: 13 years. He has been managing this fund since inception. COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % CARE AA/ CARE AA(SO)/ CRISIL AA/ ICRA AA/ ICRA AA(SO)/ IND AA/ Pass Through Certificate % BWR AA % ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ CRISIL State Government Bond % Zero Coupon Bond % AAA(SO)/ ICRA AAA/ ICRA AAA(SO) & Equivalent % BWR A+(SO)/ Reduced Face Value Bonds - Non Amortisation % CARE A+/ ICRA A+/ ICRA A+(SO)/ CARE A+(SO) % BWR AA- Total Money Market Instruments*- 3.17% (SO)/ CARE AA-/ CRISIL AA-/ ICRA AA-/ IND AA % SOV % Government Bond % CRISIL AA+/ IND AA % IND A(SO) % * Includes Net Current Assets PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns DIVIDENDS CRISIL Short- Term Bond Fund Index Index Regular Plan Direct Plan s Record Date Apr 25, Monthly Dividend Mar 26, Feb 26, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. EXIT LOAD (w.e.f. 10th November 2017) CRISIL 1 Year T-Bill Current Value of `10,000 invested Scheme CRISIL Short- Term Bond Fund Index Index If redeemed / switched-out within 12 months from the date of allotment:- For 10% of investment: Nil For remaining investment: 1% If redeemed/switched out after 12 months from the date of allotment: Nil * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 20 CRISIL 1 Year T-Bill Axis Fixed Income Opportunities Fund - Growth 28-Apr-17 Last 1 Year 5.69% 5.52% 6.11% 10,569 10,552 10, Apr-15 Last 3 Years 7.79% 7.62% 6.91% 12,519 12,460 12,216 Since Inception (15-Jul-14) 8.48% 8.15% 7.25% 13,611 13,452 13,036 Axis Fixed Income Opportunities Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 7.18% 5.52% 6.11% 10,718 10,552 10, Apr-15 Last 3 Years 9.14% 7.62% 6.91% 12,994 12,460 12,216 Since Inception (15-Jul-14) 9.74% 8.15% 7.25% 14,216 13,452 13,036 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns are calculated on ` 10 invested at inception. The performance data for 5 years period has not been provided, since scheme is in existence for less than 3 years.different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since inception and he manages 43 schemes. Please refer to annexure on Page 33 for performance of schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Dewan Housing Finance Corporation Limited BWR AAA 5.45 Muthoot Finance Limited CRISIL AA 3.80 Power Finance Corporation Limited CRISIL AAA 3.59 PVR Limited CRISIL AA Nirma Limited CRISIL AA 3.35 Dalmia Cement (Bharat) Limited ICRA AA 2.97 Piramal Enterprises Limited ICRA AA 2.86 Birla Corporation Limited ICRA AA 2.82 Indiabulls Housing Finance Limited BWR AAA 2.56 Nuvoco Vistas Corporation Limited CRISIL AA 2.45 Hinduja Leyland Finance Limited CARE AA Renew Power Venture Pvt Limited CARE A Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 2.17 Bank of Baroda CARE AA 2.16 Oriental Nagpur Betul Highway Limited CRISIL AAA(SO) 2.14 Tata Power Company Limited IND AA 2.11 JM Financial Products Limited CRISIL AA 2.01 ECL Finance Limited ICRA AA 1.92 JK Lakshmi Cement Limited CARE AA 1.89 Reliance Jio Infocomm Limited CRISIL AAA 1.72 Ujjivan Small Finance Bank Limited ICRA A IndoStar Capital Finance Limited CARE AA India Infoline Finance Limited ICRA AA 1.36 Indiabulls Housing Finance Limited ICRA AAA 1.35 Vedanta Limited CRISIL AA 1.35 Hansdeep Industries & Trading Company Limited CARE AA(SO) 1.28 LIC Housing Finance Limited CRISIL AAA 1.25 Bhopal Dhule Transmission Company Limited CRISIL AAA 1.06 Union Bank of India BWR AA 0.92 Adani Transmission Limited IND AA Housing Development Finance Corporation Limited CRISIL AAA 0.81 Northern Arc Capital Limited ICRA A Syndicate Bank IND AA Edelweiss Commodities Services Limited CRISIL AA 0.81 Vodafone Mobile Services Limited CRISIL AA 0.81 Punjab National Bank BWR AA 0.80 Magma Fincorp Limited ICRA AA Edelweiss Commodities Services Limited ICRA AA 0.54 Power Grid Corporation of India Limited CRISIL AAA 0.32 Mahindra Rural Housing Finance IND AA Vijaya Bank ICRA AA Bharti Airtel Limited CRISIL AA Indiabulls Housing Finance Limited CARE AAA 0.05 Rural Electrification Corporation Limited CRISIL AAA 0.05 Tata Sons Ltd CRISIL AAA 0.03 NABARD CRISIL AAA 0.01 STATE GOVERNMENT BOND Sovereign 5.44 ZERO COUPON BOND 4.48 Amri Hospitals Limited ## BWR A+(SO) 2.52 Aditya Birla Fashion and Retail Limited CRISIL AA 0.65 Sprit Textile Pvt Limited BWR AA-(SO) 0.64 SVL Limited ~ ICRA AA(SO) 0.52 Edelweiss Commodities Services Limited CARE AA 0.16 REDUCED FACE VALUE BONDS - NON AMORTISATION 3.49 Narmada Wind Energy Private Limited CARE A+(SO) 2.16 Ess Kay Fincorp Limited IND A(SO) 0.90 Subros Limited ICRA A GOVERNMENT BOND Sovereign 1.32 TOTAL MONEY MARKET INSTRUMENTS^ 0.51 BANKS 0.51 YES Bank Limited ICRA A PASS THROUGH CERTIFICATE 8.52 Sansar Trust ICRA AAA(SO) 3.61 IIERT TRUST CRISIL AAA(SO) 2.21 Solstice Trust ICRA A+(SO) 1.56 MFL Securitisation Trust CRISIL AAA(SO) 1.15 NET CURRENT ASSETS 2.66 NET ASSETS 100% ^Commercial Paper/ ## Secured by shares of Emami Ltd/ ~ Backed by corporate guarantee of Shriram Transport Finance Company Limited Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

21 AXIS CONSTANT MATURITY 10 YEAR FUND (AN OPEN-ENDED GILT SCHEME) INVESTMENT OBJECTIVE: To generate returns similar to that of 10 year government bonds. FUND STYLE 23rd January Cr Cr. CRISIL 10 Year Gilt Index Internal Rate Sensitivity High Med Low High Mid Low Credit Quality AVERAGE MATURITY* 9.1 years MODIFIED DURATION* 6.1 years YIELD (YIELD TO MATURITY & ) 7.80% Mr. Devang Shah Work experience: 13 years. 5th November RATING % OF ASSETS TOTAL DEBT GOVERNMENT BOND % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign % GOI Sovereign 3.74 COMPOSITION BY ASSETS COMPOSITION BY RATING Government Bond %, Total Money Market Instruments* % SOV & Equivalent % 8.40% GOI Sovereign 3.43 NET CURRENT ASSETS 3.56 NET ASSETS 100% * Includes Net Current Assets PERFORMANCE (as on 27th April 2018) Current Value of `10,000 invested Date Period Scheme CRISIL 10 Year Gilt Index Scheme CRISIL 10 Year Gilt Index Axis Constant Maturity 10 Year Fund - Growth 28-Apr-17 Last 1 Year 1.21% -1.01% 10,121 9, Apr-15 Last 3 Years 5.91% 5.74% 11,878 11, Apr-13 Last 5 Years 5.93% 5.59% 13,331 13,121 Since Inception (23-Jan-12) 6.45% 6.40% 14,791 14,749 Axis Constant Maturity 10 Year Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 1.74% -1.01% 10,174 9, Apr-15 Last 3 Years 6.46% 5.74% 12,063 11, Apr-13 Last 5 Years 6.45% 5.59% 13,662 13,121 Since Inception (1-Jan-13) 6.85% 6.07% 14,228 13,686 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Devang Shah is managing the scheme since 5th November 2012 and he manages 43 schemes. Please refer to annexure on Page 33 for performance of schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). s DIVIDENDS Record Date EXIT LOAD Regular Plan Direct Plan Mar 26, Sep 25, Half Yearly Dividend Mar 27, Dec 26, Nov 27, Regular Dividend Oct 25, Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` 10. Dividends disclosed above are since the inception of the fund. Half yearly dividend disclosed above are since the inception of the fund. Regular dividends disclosed above are for the last 3 months. NIL * For instruments with put/call option, the put/call date has been taken as the maturity date.& The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 21 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

22 AXIS BANKING & PSU DEBT FUND (AN OPEN-ENDED DEBT SCHEME) INVESTMENT OBJECTIVE: 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. FUND STYLE 8th June Cr Cr. CRISIL Short Term Bond Internal Rate Sensitivity High Med Low High Mid Low Credit Quality Credit Risk Rating [ICRA] AAAmfs $ AVERAGE MATURITY* 313 days MODIFIED DURATION* 280 days YIELD (YIELD TO MATURITY & ) 7.85% Mr. Aditya Pagaria Work experience: 11 years. 13th August COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % Total Money Market Instruments* % Zero Coupon Bond % * Includes Net Current Assets PERFORMANCE (as on 27th April 2018) Date Period Scheme Returns CARE A1+/ CRISIL A1+/ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ICRA AAA/IND AAA & Equivalent % CRISIL AA+/ ICRA AA % ICRA AA+/ IND AA % CRISIL Short- Term Bond CRISIL 1 Year T-Bill Index Cuurent Value of `10,000 invested Scheme CRISIL Short- Term Bond Fund Index CRISIL 1 Year T-Bill Index Axis Banking & PSU Debt Fund - Growth 28-Apr-17 Last 1 Year 6.80% 5.52% 6.11% 10,680 10,552 10, Apr-15 Last 3 Years 7.74% 7.62% 6.91% 12,501 12,460 12, Apr-13 Last 5 Years 8.23% 8.28% 6.97% 14,845 14,876 14,001 Since Inception (8-Jun-12) 8.38% 8.45% 7.16% 16,060 16,125 15,022 Axis Banking & PSU Debt Fund - Direct Plan - Growth 28-Apr-17 Last 1 Year 7.03% 5.52% 6.11% 10,703 10,552 10, Apr-15 Last 3 Years 7.94% 7.62% 6.91% 12,570 12,460 12, Apr-13 Last 5 Years 8.44% 8.28% 6.97% 14,985 14,876 14,001 Since Inception (1-Jan-13) 8.46% 8.37% 7.10% 15,406 15,338 14,405 Past performance may or may not be sustained in future. Calculations are based on Growth. Since inception returns is calculated on ` 1,000 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Aditya Pagaria is managing the scheme since 13th August Aditya manages 4 schemes at Axis Mutual Fund. Please refer to annexure on Page for performance of all schemes managed by the fund manager. Returns greater than 1 year period are compounded annualised (CAGR). RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Small Industries Dev Bank of India CARE AAA 9.82 Dewan Housing Finance Corporation Limited BWR AAA 6.12 NHPC Limited ICRA AAA 5.81 Power Finance Corporation Limited CRISIL AAA 4.89 NABARD IND AAA 4.88 JM Financial Products Limited CRISIL AA 3.92 Power Grid Corporation of India Limited CRISIL AAA 1.99 Tata Sons Ltd CRISIL AAA 1.98 Indiabulls Housing Finance Limited BWR AAA 1.58 Piramal Finance Limited ICRA AA 0.98 Mahindra Rural Housing Finance IND AA ICICI Bank Limited ICRA AA ZERO COUPON BOND IDFC Bank Limited ICRA AAA TOTAL MONEY MARKET INSTRUMENTS^ BANKS Yes Bank Limited ICRA A HDFC Bank Limited CARE A IndusInd Bank Limited CRISIL A Small Industries Dev Bank of India CARE A OTHERS NABARD ICRA A HDFC Limited CRISIL A NET CURRENT ASSETS 6.68 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper s DIVIDENDS Record Date EXIT LOAD Regular Plan Direct Plan Apr 25, , , , , Monthly Dividend Mar 26, , , , , Feb 26, , , , , Please note that after the payment of dividend, the falls to the extent of dividend, distribution tax and cess wherever applicable. Past performance may or may not be sustained in future. Face Value of units is ` Dividends disclosed above are since the inception of the fund. NIL * For instruments with put/call option, the put/call date has been taken as the maturity date. & The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus of the debt portfolio. 22 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

23 HYBRID OUTLOOK MAY 2018 Quick Take - Equity Equity market valuations are broadly reasonable adjusted for the cyclical low in earnings and potential for revival going forward. We remain bullish on equities from a medium to long term perspective Investors are suggested to have their asset allocation plan based on one s risk appetite and future goals in life. 15.4% 6.99% Key highlights 7.77% 10 yr G-Sec : Last 1 year Quick Take - Fixed Income The economy continues to stand on a solid macro foundation and political stability. Oil could play spoil sport. RBI is likely to keep rates stable for the remainder of the year. FPI participation in the debt markets is a sentimental positive to the rupee. Long bonds are likely to trade range bound. Short tenor bonds look attractive from a risk reward perspective. We continue to advise investors to stay invested in short to medium term strategies and actively look at credit funds. Buoyed by global optimism and domestic cheer on initial quarterly earnings, the BSE Sensex and NIFTY 50 Index gained 6% in the month. Midcap and small cap indices recovered 5.8% and 7.6% respectively. FPIs continued to remain net sellers this month with sales of US$0.8 bn during the month while DIIs bought US$1.16 bn worth of equities. Key Events During the Month Flip flop by RBI: The MPC left the key policy rates unchanged in its latest policy review. The tone of the policy however was mildly dovish on the back of the recent fall in headline CPI numbers. The tone does assign some upside risks on account of crude prices and food inflation. The policy minutes were much more hawkish in comparison, especially where one member of the MPC suggested switching from the neutral stance to beginning the process of withdrawal of accommodation Key announcements in the policy also included much needed relief for the banking sector with the deferment of IND AS and deferment in the counter cyclical buffer (CCB) aiding bank capital levels. The policy benchmark the repo rate remains at 6.0% and the reverse repo at 5.75%. Rising Crude A Cause for Worry: Crude prices have seen their highest levels in 4 years. WTI Brent crude ended the quarter at US$73.81/barrel. India being an oil importing nation is highly sensitive to movements in crude prices. Sustained high levels in crude oil is likely to impact budget calculations on the fiscal side and inflation management by the RBI. Inflation & IIP Gradual Recovery & Easing Prices: CPI inflation eased to 4.3% in March V/s 4.44% in February. Core inflation inched up marginally to 5.2%. IIP numbers in February continued to indicate a nascent recovery in the manufacturing sector. Depreciating Currency: The USD-INR depreciated to Rs66.5/US$ in April from Rs65.1/US$ in March on rising crude prices and ebbing foreign flows. Increasing FPI participation in Debt Markets: Foreign investors will be allowed to increase holdings by approx. Rs 1.05 lakh crore (US$ 16 billion) for the fiscal year to March 2019 as RBI increased FPI limits to G-Secs and domestic corporate bonds. Additionally, FPI`s are now permitted to invest in all tenors of G-Secs and corporate bonds with a minimum tenor of 1 year. Market View Equity Markets The corporate earnings season begun with prominent results in the information technology and financial sectors. Large bell weather stocks in these sectors have beaten market consensus estimates and our internal estimates. The performance of portfolio companies is encouraging. As the results season unfolds, we should get better clarity on the overall performance for companies. The IMD has forecasted a normal monsoon for the year. Historically, consumption has done well in normal & above normal monsoon years. While it is too early to be conclusive, high frequency statistics on consumption trends have shown improvements. We continue to believe in the rural consumption story that is expected to play out over the next few quarters. We believe that rural centric policies undertaken in the run up to the 2019 general elections, will bode well for rural spending for the next few quarters. The economy continues to stand on a solid macro foundation and political stability. The month ahead will see elections in Karnataka which will be an indicator for the political mood in the country. The resultant mandate for the ruling party will set the tone for the markets going forward. On the global front, commentary from the FOMC meeting will drive global sentiment. We continue to expect elevated volatility levels in the equity markets and hence advise investors to look at equity allocations from a medium to long term investment horizon. Systematic investments into equity products could also help investors ride out short term volatility. Debt Markets Generally, we see the short term yields to rally and remain soft in April-June on account of easy liquidity condition and low corporate issuances, but this year we saw yields rising by as much as bps contrary to all expectations on account of a depreciating rupee and outflow of currency in circulation leading to tight banking liquidity. Long bond yields softened in the initial part of the month but gave up most gains due to an increase in SDL borrowing by Rs 40,000 Cr and hawkish RBI minutes. Concerns over rising oil prices is likely to have a bearing on interest rates. We continue to believe that the duration game has played out and investors should focus on short term funds. Structural liquidity (Government Cash Balances + LAF Balances) continues to be positive. We expect structural liquidity to remain in surplus to neutral zone for next 6 months. 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. As highlighted above, 1-3-year segment (short segment) is likely to see heightened activity with the RBI`s move of bringing foreign investors into the market. 1-3 year yields are currently trading at 200 basis over the operating rate. Yield curves across the spectrum have seen upward movements following the G-Sec trends. Ample liquidity and attractive spreads over the overnight rate still offers some opportunity. Hence 1-3-year space is likely to offer superior risk adjusted returns as compared to money market and ultra-short term funds. Source: Bloomberg, Axis MF Research. 23