Save Tax + Build Wealth = Khushi Ke Aansu

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1 Save Tax + Build Wealth = Khushi Ke Aansu Invest in Don t just save tax, build wealth over long term by investing in Axis Long Term Equity Fund. This Equity Linked Saving Scheme (ELSS) invests in equities that s why it helps you plan for future goals like retirement, children s education and their marriage. So, go ahead, invest for a happier future. Save up to ` 46,350** in taxes Potential to build wealth in the long run as money is invested in equity Claim deduction up to ` 1.5 lakhs under Section 80C of the IT Act One of the lowest lock-in periods of 3 years To know more, contact your financial advisor today. Axis Long Term Equity Fund (An open-ended equity linked savings scheme with 3 year lock-in) This product is suitable for investors who are seeking*: Capital appreciation & generating income over long term Investment in a diversified portfolio predominantly consisting of equity and equity related instruments *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Moderately Riskometer Moderate Moderately LOW HIGH Investors understand that their principal will be at moderately high risk ELSS investment is subject to lock-in for 3 years. ** Investment up to 1.5 lakhs in ELSS is eligible for deduction from taxable income under Sec 80C of the Income Tax Act, This implies that the Indian resident below the age of 60 years whose total income does not exceed 50 lakhs will save taxes of ` 46,350 on investment made in ELSS in FY Tax savings may vary depending on the applicable tax slab. Investors are advised to consult his/ her own Tax Consultant with respect to the specific amount of tax and other implications arising out of his/ her participation in ELSS. Statutory Details: Axis Mutual Fund, sponsored by Axis Bank Ltd., has been established as a Trust under the Indian Trusts Act, 1882 (liability restricted to ` 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Company. Ltd. (the AMC). Risk Factors: The Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the schemes. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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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 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 R C H % 17.9% -4.9% 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 Equity markets faced stiff headwinds largely on global factors this month. Globally, India was one of the worst performers among the emerging basket. Domestically, local factors including the unearthing of the PNB frauds have had a negative impact on the markets. The S&P BSE Sensex & NIFTY 50 fell 5% for the month. Banking (-8.6%), capital goods (-6.3%) and consumer durables (-5.7%) fell the most among sector indices. FPIs sold US$1.5bn during the month while DIIs bought Rs. 16,500 worth of equities. Mutual fund inflows continued to remain positive for the 22nd month in a row. SIP collections for the month of January 2018 stood at 6,644 Cr. According to AMFI, mutual fund assets under management have growth 6.5x in the last 11 years highlighting the retail participation in the equity and debt markets. Company results for Q3 FY 18 have seen significant improvement across sectors the highlight being recovery in the consumer businesses and housing sector, both partly helped by the low demonetization base. Consensus NIFTY earnings also did not see any negative commentaries, highlighting that there is confidence in a likely step-up in growth going forward. Consumer companies reported strong volume growth led by a mix of favourable base, demand recovery and normalization of business post GST. Passenger vehicles continued their steady growth trend, while commercial vehicles saw a sharp increase in volumes. Cement volumes too registered an uptick albeit at the cost of profitability. Order booking for industrial companies gained some momentum suggesting a moderate recovery. India GDP growth climbed to 7.2%YoY from a revised 6.5% growth last quarter as negative supply shocks from demonetization and GST appear to have faded away as reported by the CSO. In addition, it also revised the FY18 advance estimate for GDP marginally by 10bps to 6.6%, thus implying a GDP growth of 7.1% in 4QFY18. Headline consumer price index (CPI) for the month of January showed a downward tick to 5.07% vis-à-vis previous month s reading of 5.2% owing to lower food prices. Factory output (IIP) grew at a robust 7.1% in December on the back of high manufacturing production. This is the second consecutive month of strong IIP numbers which point to a revival in the manufacturing sector. Brent crude prices retreated from elevated levels this month on the back of higher than expected US crude inventories and a strong US Dollar The economy is well positioned with a solid macro foundation, political stability and positive global focus. This combined with structural reforms is likely to push growth higher in the medium term. The recent budget announcements relating to rural, agriculture and healthcare are positive for growth in general and for the specific sectors of the economy. 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 are likely to be undertaken in the run up to the 2019 general elections, which will bode well for rural spending for the next few quarters. As a philosophy, we have consciously stayed away from PSU stocks especially PSU banks. The recent turmoil in these stocks caused limited damage to our portfolios. The recent bout of volatility stands testament to our focus on quality and investment process in building long term sustainable portfolios for investors. 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** Date SECTOR ALLOCATION TURNOVER* (1 YEAR) 1.82 times Banks Finance Auto 9.25 Consumer Non Durables 7.82 Software 6.35 PERFORMANCE (as on 28th February 2018) 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 5.40 Retailing 3.99 Textile Products 2.80 Petroleum 2.13 Products Current Value of `10,000 invested Scheme NIFTY 50 S&P BSE SENSEX Returns Axis Equity Fund - Growth 28-Feb-17 Last 1 Year 24.66% 19.75% 20.46% 12,466 11,975 12, Feb-15 Last 3 Years 7.72% 7.21% 6.85% 12,504 12,327 12, Feb-13 Last 5 Years 15.87% 14.41% 14.28% 20,895 19,609 19,496 Since Inception (5-Jan-10) 11.88% 10.10% 10.01% 24,970 21,914 21,774 Axis Equity Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 26.36% 19.75% 20.46% 12,636 11,975 12, Feb-15 Last 3 Years 8.93% 7.21% 6.85% 12,933 12,327 12, Feb-13 Last 5 Years 17.20% 14.41% 14.28% 22,124 19,609 19,496 Since Inception (1-Jan-13) 16.22% 12.97% 12.99% 21,724 18,768 18,787 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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. Options Record Date DIVIDENDS Regular Plan Direct Plan Mar 21, Dividend Mar 10, Mar 05, 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. **Risk-free rate assumed to be 6.05% (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 28th February Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. % OF ASSETS BANKS HDFC Bank Limited 9.78 Kotak Mahindra Bank Limited 8.24 ICICI Bank Limited 3.50 IndusInd Bank Limited 2.15 FINANCE HDFC Limited 6.55 Bajaj Finance Limited 4.76 Bajaj Finserv Limited 3.09 AUTO 9.25 Maruti Suzuki India Limited 7.02 Ashok Leyland Limited 1.17 Mahindra & Mahindra Limited 1.07 CONSUMER NON DURABLES 7.82 Britannia Industries Limited 3.32 Hindustan Unilever Limited 2.95 Asian Paints Limited 1.55 SOFTWARE 6.35 Infosys Limited 3.43 Tata Consultancy Services Limited 1.47 Tech Mahindra Limited 1.45 AUTO ANCILLARIES 5.40 Endurance Technologies Limited 2.31 Motherson Sumi Systems Limited 2.11 MRF Limited 0.98 RETAILING 3.99 Avenue Supermarts Limited 3.99 TEXTILE PRODUCTS 2.80 Page Industries Limited 2.80 PETROLEUM PRODUCTS 2.13 Reliance Industries Limited 2.13 OTHERS Chemicals 2.11 Pidilite Industries Limited 2.11 Pharmaceuticals 2.01 Cadila Healthcare Limited 1.01 Divi's Laboratories Limited 0.99 Cement 1.99 UltraTech Cement Limited 1.02 Shree Cements Limited 0.97 Gas 1.96 Petronet LNG Limited 0.99 Indraprastha Gas Limited 0.97 Industrial Capital Goods 1.19 Bharat Electronics Limited 1.19 Construction Project 1.02 Larsen & Toubro Limited 1.02 Telecom - Services 1.02 Bharti Airtel Limited 1.02 Pesticides 0.97 UPL Limited 0.97 Ferrous Metals 0.91 Tata Steel Limited 0.91 Media & Entertainment 0.77 Zee Entertainment Enterprises Limited 0.77 Non - Ferrous Metals 0.52 Hindalco Industries Limited 0.52 Total Equity Debt, Cash & Other Receivables 9.73 Net Assets 100% 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) 7 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 29th June , Cr. 3, Cr. Nifty 50 Investment Style Value Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard Deviation % Beta Sharpe Ratio** Date Options SECTOR ALLOCATION DIVIDENDS Record Date TURNOVER* (1 YEAR) 1.44 times Finance Banks Software Auto Ancillaries 9.86 Industrial 8.94 Products PERFORMANCE (as on 28th February 2018) Period Scheme Returns NIFTY 50 S&P BSE 200 Mr. Jinesh Gopani Work experience:16 years. 07th June 2016 Auto 6.83 Cement 6.35 Industrial Capital 3.42 Goods Pharmaceuticals Current Value of `10,000 invested Scheme NIFTY 50 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. **Risk-free rate assumed to be 6.05% (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 28th February Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. S&P BSE 200 Axis Focused 25 Fund - Growth 28-Feb-17 Last 1 Year 26.12% 19.75% 20.55% 12,612 11,975 12, Feb-15 Last 3 Years 12.10% 7.21% 9.34% 14,096 12,327 13, Feb-13 Last 5 Years 17.69% 14.41% 16.37% 22,590 19,609 21,352 Since Inception (29-June-12) 18.06% 14.23% 16.03% 25,640 21,263 23,241 Axis Focused 25 Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 27.60% 19.75% 20.55% 12,760 11,975 12, Feb-15 Last 3 Years 13.51% 7.21% 9.34% 14,635 12,327 13, Feb-13 Last 5 Years 19.14% 14.41% 16.37% 24,014 19,609 21,352 Since Inception (1-Jan-13) 17.90% 12.97% 14.55% 23,396 18,768 20,164 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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 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. % OF ASSETS FINANCE Bajaj Finserv Limited 5.42 Bajaj Finance Limited 4.40 Gruh Finance Limited 4.25 HDFC Standard Life Insurance Company Limited 2.71 Mas Financial Services Limited 1.14 JM Financial Limited 1.07 BANKS HDFC Bank Limited 8.88 Kotak Mahindra Bank Limited 6.29 SOFTWARE Tata Consultancy Services Limited 5.97 Info Edge (India) Limited 3.73 MindTree Limited 1.50 AUTO ANCILLARIES 9.86 Motherson Sumi Systems Limited 3.84 WABCO India Limited 3.08 Endurance Technologies Limited 2.94 INDUSTRIAL PRODUCTS 8.94 Supreme Industries Limited 6.09 Cummins India Limited 2.85 AUTO 6.83 Maruti Suzuki India Limited 6.83 CEMENT 6.35 Shree Cements Limited 6.35 INDUSTRIAL CAPITAL GOODS 3.42 V-Guard Industries Limited 3.42 PHARMACEUTICALS 3.36 Cadila Healthcare Limited 2.18 Sun Pharma Advanced Research Company Limited 1.18 OTHERS 9.13 Chemicals 3.08 Pidilite Industries Limited 3.08 Textile Products 3.04 Page Industries Limited 3.04 Retailing 3.01 Avenue Supermarts Limited 3.01 Total Equity Cash & Other Receivables 6.74 Net Assets 100% 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) 8 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** Date SECTOR ALLOCATION Regular Plan Options Record Date EXIT LOAD TURNOVER* (1 YEAR) 1.03 times PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns Mr. Shreyash Devalkar Work experience: 16 years. 23rd November 2016 Finance Banks 4.73 Auto Ancillaries Consumer Non Retailing Durables Industrial Capital 3.72 Industrial 8.65 Goods Products Gas 3.66 Textile Products S&P BSE Midcap NIFTY 50 Current Value of `10,000 invested Scheme S&P BSE Midcap Direct Plan NIFTY 50 Axis Midcap Fund - Growth 28-Feb-17 Last 1 Year 26.76% 23.68% 19.75% 12,676 12,368 11, Feb-15 Last 3 Years 9.90% 16.65% 7.21% 13,279 15,885 12, Feb-13 Last 5 Years 21.77% 22.97% 14.41% 26,792 28,132 19,609 Since Inception (18-Feb-11) 18.75% 15.42% 11.09% 33,490 27,423 20,950 Axis Midcap Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 28.18% 23.68% 19.75% 12,818 12,368 11, Feb-15 Last 3 Years 11.17% 16.65% 7.21% 13,748 15,885 12, Feb-13 Last 5 Years 23.24% 22.97% 14.41% 28,450 28,132 19,609 Since Inception (1-Jan-13) 20.35% 19.11% 12.97% 26,019 24,662 18,768 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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. **Risk-free rate assumed to be 6.05% (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 28th February Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. 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) 9 % OF ASSETS FINANCE Gruh Finance Limited 7.77 Sundaram Finance Limited 4.58 Bajaj Finance Limited 3.77 Cholamandalam Investment and Finance Company Limited 3.49 Mahindra & Mahindra Financial Services Limited 2.73 Bajaj Finserv Limited 2.52 Mas Financial Services Limited 1.32 Multi Commodity Exchange of India Limited 0.51 AUTO ANCILLARIES Endurance Technologies Limited 4.40 WABCO India Limited 2.52 MRF Limited 2.20 Motherson Sumi Systems Limited 1.82 Balkrishna Industries Limited 1.48 CONSUMER NON DURABLES 9.35 Procter & Gamble Hygiene and Health Care Limited 4.12 Britannia Industries Limited 2.14 Jubilant Foodworks Limited 1.56 Kansai Nerolac Paints Limited 1.52 INDUSTRIAL PRODUCTS 8.65 Supreme Industries Limited 4.06 Astral Poly Technik Limited 2.71 Schaeffler India Limited 1.88 TEXTILE PRODUCTS 4.90 Page Industries Limited 4.90 BANKS 4.73 City Union Bank Limited 4.73 RETAILING 4.25 Avenue Supermarts Limited 2.86 Trent Limited 1.39 INDUSTRIAL CAPITAL GOODS 3.72 V-Guard Industries Limited 3.72 GAS 3.66 Indraprastha Gas Limited 2.15 Petronet LNG Limited 1.51 OTHERS Chemicals 3.56 Tata Chemicals Limited 2.65 Camlin Fine Sciences Limited 0.91 Consumer Durables 2.39 TTK Prestige Limited 2.39 Construction Project 2.34 Voltas Limited 2.34 Software 2.31 Info Edge (India) Limited 2.31 Pharmaceuticals 1.69 Divi's Laboratories Limited 1.69 Transportation 1.43 Gujarat Pipavav Port Limited 1.43 Auto 1.22 Ashok Leyland Limited 1.22 Ferrous Metals 1.10 Shankara Building Products Limited 1.10 Other Equity (less than 0.50% of the corpus) 0.58 Total Equity Cash & Other Receivables 4.99 Net Assets 100% 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. 16, Cr. S&P BSE 200 Investment Style Value Blend Growth Large Mid Small Market Cap STATISTICAL MEASURES (3 YEARS) Standard % Deviation Beta Sharpe Ratio** Date Options Regular Dividend SECTOR ALLOCATION DIVIDENDS TURNOVER* (1 YEAR) 1.31 times Finance Banks Software 8.10 Auto Ancillaries 7.87 Auto 7.08 Chemicals 6.58 PERFORMANCE (as on 28th February 2018) Period Record Date Scheme Returns S&P BSE 200 NIFTY 50 Mr. Jinesh Gopani Work experience: 16 years. 1st April 2011 Consumer 6.41 Durables Pharmaceuticals 4.96 Retailing Current Value of `10,000 invested Scheme S&P BSE 200 Jan 31, Jan 25, Jan 22, NIFTY 50 Axis Long Term Equity Fund - Growth* 28-Feb-17 Last 1 Year 24.92% 20.55% 19.75% 12,492 12,055 11, Feb-15 Last 3 Years 10.09% 9.34% 7.21% 13,351 13,079 12, Feb-13 Last 5 Years 23.87% 16.37% 14.41% 29,175 21,352 19,609 Since Inception (29-Dec-09) 18.87% 11.13% 10.31% 41,067 23,697 22,294 Axis Long Term Equity Fund - Direct Plan - Growth* 28-Feb-17 Last 1 Year 26.33% 20.55% 19.75% 12,633 12,055 11, Feb-15 Last 3 Years 11.31% 9.34% 7.21% 13,800 13,079 12, Feb-13 Last 5 Years 25.31% 16.37% 14.41% 30,917 21,352 19,609 Since Inception (1-Jan-13) 23.11% 14.55% 12.97% 29,247 20,164 18,768 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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. 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 **Risk-free rate assumed to be 6.05% (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 28th February Source: ACEMF *Based on equity, equity derivatives and Fixed Income Securities transactions only. CBLO/ Repo/FD/Margin FD/MFU/SLB are not considered. % OF ASSETS FINANCE HDFC Limited 6.27 Bajaj Finance Limited 4.65 Gruh Finance Limited 4.07 Sundaram Finance Limited 2.79 Multi Commodity Exchange of India Limited 0.76 BANKS HDFC Bank Limited 7.20 Kotak Mahindra Bank Limited 6.79 SOFTWARE 8.10 Tata Consultancy Services Limited 4.91 Info Edge (India) Limited 2.42 Wipro Limited 0.77 AUTO ANCILLARIES 7.87 Motherson Sumi Systems Limited 3.69 WABCO India Limited 2.50 Endurance Technologies Limited 1.68 AUTO 7.08 Maruti Suzuki India Limited 4.84 Eicher Motors Limited 2.25 CHEMICALS 6.58 Pidilite Industries Limited 6.58 CONSUMER DURABLES 6.41 TTK Prestige Limited 3.45 Symphony Limited 2.96 PHARMACEUTICALS 4.46 Sun Pharmaceutical Industries Limited 2.31 Cadila Healthcare Limited 1.45 Divi's Laboratories Limited 0.70 RETAILING 4.37 Avenue Supermarts Limited 4.37 OTHERS Power 3.32 Torrent Power Limited 3.32 Industrial Products 2.88 Cummins India Limited 1.60 Astral Poly Technik Limited 1.28 Pesticides 2.29 PI Industries Limited 2.29 Construction Project 2.20 Larsen & Toubro Limited 2.20 Industrial Capital Goods 0.97 V-Guard Industries Limited 0.97 Textile Products 0.90 Page Industries Limited 0.90 Commercial Services 0.79 Quess Corp Limited 0.79 Consumer Non Durables 0.59 Nestle India Limited 0.59 Other Equity (less than 0.50% of the corpus) 2.26 Total Equity Debt, Cash & Other Receivables 6.38 Net Assets 100% EXIT LOAD NIL 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 Finance Auto 9.92 Auto Ancillaries 5.89 Software 4.42 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. Retailing 4.39 Chemicals 2.56 Industrial Capital Goods Rating % OF ASSETS TOTAL DEBT CORPORATE BOND Vedanta Limited CRISIL AA 3.71 Edelweiss Commodities Services Limited CRISIL AA 2.47 Power Finance Corporation Limited CRISIL AAA 2.20 HDFC Limited CRISIL AAA 2.10 Rural Electrification Corporation Limited CRISIL AAA 1.41 ICICI Home Finance Company Limited ICRA AAA 1.06 Edelweiss Commodities Services Limited ICRA AA 0.87 Tata Sons Ltd CRISIL AAA 0.66 Allahabad Bank BWR A 0.45 Allahabad Bank CARE A Cholamandalam Investment and Finance Company Limited IND AA Dewan Housing Finance Corporation Limited BWR AAA 0.22 Reliance Jio Infocomm Limited CRISIL AAA 0.31 JM Financial Products Limited ICRA AA 0.22 LIC Housing Finance Limited CRISIL AAA 0.22 Renew Power Venture Pvt Limited CARE A STATE GOVERNMENT BOND SOVEREIGN 2.21 GOVERNMENT BOND SOVEREIGN 0.02 ZERO COUPON BOND 1.83 Tata Motors Finance Limited CARE AA TOTAL EQUITY BANKS HDFC Bank Limited 9.46 Kotak Mahindra Bank Limited 7.38 ICICI Bank Limited 1.87 CONSUMER NON DURABLES Asian Paints Limited 3.00 Hindustan Unilever Limited 2.93 Kansai Nerolac Paints Limited 1.82 Britannia Industries Limited 1.53 Jubilant Foodworks Limited 1.07 FINANCE Bajaj Finance Limited 5.65 Mahindra & Mahindra Financial Services Limited 1.96 Mas Financial Services Limited 1.27 Multi Commodity Exchange of India Limited 1.04 HDFC Limited 0.97 AUTO 9.92 Maruti Suzuki India Limited 6.76 Ashok Leyland Limited 3.16 AUTO ANCILLARIES 5.74 Motherson Sumi Systems Limited 3.50 MRF Limited 2.24 SOFTWARE 4.42 Infosys Limited 2.74 Tech Mahindra Limited 1.68 RETAILING 4.39 Avenue Supermarts Limited 4.39 CHEMICALS 2.56 Pidilite Industries Limited 2.56 INDUSTRIAL CAPITAL GOODS 2.38 V-Guard Industries Limited 2.38 OTHERS Cement 2.25 Shree Cements Limited 1.23 UltraTech Cement Limited 1.02 Textile Products 1.58 Page Industries Limited 1.58 Ferrous Metals 1.56 Shankara Building Products Limited 1.56 Pharmaceuticals 1.48 Divi's Laboratories Limited 1.48 Construction Project 1.30 Voltas Limited 1.30 Telecom - Services 1.03 Bharti Airtel Limited 1.03 Media & Entertainment 0.94 Zee Entertainment Enterprises Limited 0.94 Transportation 0.58 InterGlobe Aviation Limited 0.58 Other Equity (less than 0.50% of the corpus) 0.15 Debt, Cash & Other Receivables Net Assets 100% 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 Options AVERAGE 145 days MODIFIED 131 days YIELD (YIELD TO MATURITY & ) 7.41% TURNOVER # (1 YEAR) times Date DIVIDENDS Record Date EXIT LOAD 2, Cr. 2, Cr. Mr. Ashwin Patni Work experience: 16 years. He has been managing the fund since 27th April 2015 PERFORMANCE (as on 28th February 2018) Period Regular Plan Scheme Returns CRISIL Liquid Fund Index CRISIL 1 Year T-Bill Index Crisil Liquid Fund Index Mr. Devang Shah Work experience: 13 years. inception. Direct Plan Current Value of `10,000 invested Scheme CRISIL Liquid Fund Index 0.25% if redeemed / switched out within 7 days from the date of allotment. (w.e.f. 15th May 2015) CRISIL 1 Year T-Bill Index Axis Enhanced Arbitrage Fund - Growth 28-Feb-17 Last 1 Year 5.87% 6.68% 5.65% 10,587 10,668 10, Feb-15 Last 3 Years 6.38% 7.36% 6.96% 12,043 12,380 12,243 Since Inception (14-Aug-14) 6.66% 7.58% 7.22% 12,566 12,955 12,804 Axis Enhanced Arbitrage Fund - Direct Plan - Growth Feb 28, 2017 Last 1 Year 6.74% 6.68% 5.65% 10,674 10,668 10,565 Feb 27, 2015 Last 3 Years 7.27% 7.36% 6.96% 12,349 12,380 12,243 Since Inception (14-Aug-14) 7.55% 7.58% 7.22% 12,944 12,955 12,804 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). Feb 27, Dividend Jan 31, Dec 21, 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 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. % OF ASSETS TOTAL HEDGED EQUITY Sun Pharmaceutical Industries Limited 8.10 The Federal Bank Limited 5.67 Motherson Sumi Systems Limited 4.99 Mahindra & Mahindra Limited 4.69 HDFC Limited 3.16 Maruti Suzuki India Limited 2.98 Bajaj Finance Limited 2.85 Century Textiles & Industries Limited 2.84 Wipro Limited 2.24 Torrent Power Limited 2.03 Dewan Housing Finance Corporation Limited 1.53 United Spirits Limited 1.45 Aurobindo Pharma Limited 1.35 Nestle India Limited 1.35 Divi's Laboratories Limited 1.27 Mahindra & Mahindra Financial Services Limited 1.19 Kotak Mahindra Bank Limited 1.06 CESC Limited 0.97 GMR Infrastructure Limited 0.95 Jaiprakash Associates Limited 0.88 Tata Global Beverages Limited 0.78 Bank of Baroda 0.66 LIC Housing Finance Limited 0.63 Dr. Reddy's Laboratories Limited 0.61 Tata Motors Limited 0.59 Wockhardt Limited 0.54 IDFC Bank Limited 0.54 Tata Motors Limited 0.53 Fortis Healthcare Limited 0.46 Ashok Leyland Limited 0.44 UPL Limited 0.43 Steel Authority of India Limited 0.41 Manappuram Finance Limited 0.41 Capital First Limited 0.36 DLF Limited 0.34 Jindal Steel & Power Limited 0.34 Idea Cellular Limited 0.32 Titan Company Limited 0.31 Shree Cements Limited 0.28 Suzlon Energy Limited 0.26 Siemens Limited 0.25 Housing Development and Infrastructure Limited 0.25 Jain Irrigation Systems Limited 0.24 Tata Communications Limited 0.23 Max Financial Services Limited 0.23 Pidilite Industries Limited 0.21 Havells India Limited 0.20 Shriram Transport Finance Company Limited 0.18 Escorts Limited 0.18 The Karnataka Bank Limited 0.15 Godfrey Phillips India Limited 0.14 Jet Airways (India) Limited 0.14 BEML Limited 0.14 Arvind Limited 0.14 Equitas Holdings Limited 0.12 Indiabulls Housing Finance Limited 0.12 Power Grid Corporation of India Limited 0.12 Asian Paints Limited 0.12 CEAT Limited 0.11 Bharat Electronics Limited 0.08 Allahabad Bank 0.06 IFCI Limited 0.06 JSW Steel Limited 0.06 MRF Limited 0.06 Balkrishna Industries Limited 0.06 L&T Finance Holdings Limited 0.05 IDFC Limited 0.05 ICICI Prudential Life Insurance Company Limited 0.04 Adani Power Limited ~ 0.04 Britannia Industries Limited 0.03 Hindalco Industries Limited 0.03 The South Indian Bank Limited 0.03 Strides Shasun Limited 0.03 Union Bank of India 0.03 Reliance Capital Limited 0.02 IRB Infrastructure Developers Limited 0.02 Andhra Bank 0.01 Amara Raja Batteries Limited 0.01 Syndicate Bank 0.01 DEBT, CASH & OTHER RECEIVABLES NET ASSET 100% 100% ~ Secured by shares of Adani Ports & SEZ Ltd and Adani Transmission Limited 12 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

13 FIXED INCOME M A R C H % 3.65% 6.25% 6.87% 10 yr G-Sec : Last 1 year 5.07% CPI Inflation : Last 1 year 6.00% Repo : Last 1 year QUICK TAKE Key Events During the Month India GDP - The World`s Fastest Growing Economy India GDP growth climbed to 7.2%YoY from a revised 6.5% growth last quarter as negative supply shocks from demonetization and GST appear to have faded away as reported by the CSO. In addition, it also revised the FY18 advance estimate for GDP marginally by 10bps to 6.6%, thus implying a GDP growth of 7.1% in 4QFY18. Minutes of the MPC - The Hawks descend on Mint Street The minutes of the February MPC meeting reinstated the cautious approach of all members as inflation uncertainty has increased. Amid increased inflation uncertainty, possible closure of output gap with improved growth also appears to worry a few members. While the tone RBI policy earlier last month was neutral, the hawkish tones of the MPC minutes suggests a possible increase in interest rates going forward. India 10 Year - Continued Sell Off! The GILT markets continue to remain volatile on the back of global headwinds, hawkish comments from the MPC and concerns over the fiscal math in the recent budget announcements. The 10 year ended at 7.73% for February 2018 v/s 7.43% in January Liquidity in the market has seen a significant decline as market participants have accumulated large MTM loses on their portfolios and lack appetite for long bonds. Inflation - Above the RBI target Headline consumer price index (CPI) for the month of January showed a downward tick to 5.07% vis-à-vis previous month s reading of 5.2% owing to lower food prices. We continue to believe that inflation will range between 4.5% 5% for FY 19. Brent crude prices remained range bound between US$ 60-70/bbl adding to the inflation math. US Rate Hikes - Multiple Rate Hikes likely Jerome Powell, the new Fed chair in his first address to the US senate is likely to follow his predecessor s actions on rate hikes. While markets have been looking for clarity over whether the Fed will accelerate the pace of its rate increases this year, we anticipate 3-4 hikes in the current calendar year Market View The bond markets have seen a sustained sell off over the last three months. While a tactical reversal cannot be ruled out, a sustained reversal in bond yields looks unlikely. We attribute this forecast due to the following points Bonds continue to remain under pressure as 10-year benchmark yield goes over 7.70%. Investor demand continues to remain fragile CPI continues to remain above the RBI target range The hawkish tone of the MPC will keep the market cautious in the run up to the forthcoming RBI policy. The demand/supply dynamic in the domestic markets coupled with global bond movements are likely to set the tone for the bond markets for the coming months. We continue to advise investors to stay invested in short to medium term strategies and to start actively looking at credit funds. 10 YEAR G-SEC YIELD 7.73% On the flipside, RBI intervention or a material fall in inflation coupled with revival in investor demand are the only foreseeable factors that could spur a significant rally in the bond markets at this juncture. Structural liquidity (Government Cash Balances + LAF Balances & MSS) in the system continue to positive. We expect structural liquidity to remain in surplus to neutral zone for next 6-12 months. However, bank liquidity is neutral given the government cash balances, MSS unwinding and long term repos undertaken by the RBI which offset advance tax outflows from the system. Following the benchmark, 1-3-year segment of the curve has seen a significant rise in yields and volatility. The short end of the corporate curve has seen significant market action and currently trades at spreads of over basis over the overnight repo rate, a 3 year high. 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. 25, Cr. Crisil Liquid Fund Index Internal Rate Sensitivity Med Mid Credit Quality Credit Risk Rating [ICRA] A1+mfs^ CARE AAA mfs^ AVERAGE MATURITY* 34 days MODIFIED DURATION* 34 days YIELD (YIELD TO MATURITY & ) 6.79% Total Money Market Instruments* % State Government Bond % Corporate Bond % * Includes Net Current Assets Mr. Devang Shah Work experience: 13 years. 5th November Mr. Aditya Pagaria Work experience: 11 years. 13th August COMPOSITION BY ASSETS COMPOSITION BY RATING Date CARE A1+/ CRISIL A1+/ CRISIL A1+(SO)/ ICRA A1+/ IND A1+/ BWR AAA & Equivalent % SOV % CRISIL AA % ICRA AA % Regular Plan Retail Plan Direct Plan Dividend (` Per Dividend (` Per Dividend (` Per unit) unit) unit) Options Record Date Monthly Dividend PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns CRISIL Liquid Fund Index CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Liquid Fund Index CRISIL 1 Year T-Bill Index Axis Liquid Fund - Growth 28-Feb-17 Last 1 Year 6.70% 6.68% 5.65% 10,670 10,668 10, Feb-15 Last 3 Years 7.46% 7.36% 6.96% 12,410 12,377 12, Feb-13 Last 5 Years 8.13% 8.08% 7.05% 14,784 14,750 14,058 Since Inception (9-Oct-09) 8.00% 7.63% 6.49% 19,076 18,542 16,948 Axis Liquid Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 6.78% 6.68% 5.65% 10,678 10,668 10, Feb-15 Last 3 Years 7.53% 7.36% 6.96% 12,436 12,377 12, Feb-13 Last 5 Years 8.20% 8.08% 7.05% 14,834 14,750 14,058 Since Inception (31-Dec-12) 8.22% 8.08% 7.09% 15,038 14,935 14,243 Axis Liquid Fund - Retail Plan - Growth 28-Feb-17 Last 1 Year 6.10% 6.68% 5.65% 10,610 10,668 10, Feb-15 Last 3 Years 6.88% 7.36% 6.96% 12,212 12,377 12, Feb-13 Last 5 Years 7.57% 8.08% 7.05% 14,404 14,750 14,058 Since Inception (1-Mar-10) 7.71% 7.87% 6.68% 18,120 18,334 16,780 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). Feb 26, , , , , , , Jan 25, , , , , , , Dec 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. * 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. 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 IndusInd Bank Limited CRISIL A Punjab National Bank ICRA A RBL Bank Limited ICRA A HDFC Bank Limited IND A Yes Bank Limited ICRA A RBL Bank Limited CRISIL A Bandhan Bank Limited ICRA A HDFC Bank Limited CRISIL A Small Industries Dev Bank of India CRISIL A RBL Bank Limited CARE A Yes Bank Limited CARE A The South Indian Bank Limited CRISIL A OTHERS Indiabulls Housing Finance Limited CRISIL A NABARD ICRA A Reliance Industries Limited CRISIL A Edelweiss Commodities Services Limited CRISIL A Reliance Jio Infocomm Limited CRISIL A Network18 Media & Investments Limited ICRA A National Housing Bank CRISIL A India Infoline Finance Limited CRISIL A Aditya Birla Finance Limited ICRA A Chennai Petroleum Corporation Limited CRISIL A Tata Capital Financial Services Limited CRISIL A Hindalco Industries Limited CRISIL A Gruh Finance Limited CRISIL A Piramal Enterprises Limited ICRA A Tata Motors Finance Limited ICRA A JM Financial Products Limited ICRA A India Infoline Limited CRISIL A Vedanta Limited CRISIL A Magma Fincorp Limited CRISIL A Aditya Birla Fashion and Retail Limited CRISIL A TV Sundram Iyengar & Sons Pvt Ltd ICRA A Shriram Transport Finance Company Limited CRISIL A Tata Power Company Limited CRISIL A Sundaram Finance Limited CRISIL A Dewan Housing Finance Corporation Limited CRISIL A Export Import Bank of India CRISIL A JSW Steel Limited ICRA A Kotak Mahindra Investments Limited CRISIL A Piramal Housing Finance Pvt Limited ICRA A SBI Cards & Payment Services Pvt Limited CRISIL A Mahindra & Mahindra Financial Services Limited CRISIL A National Housing Bank ICRA A Shapoorji Pallonji and Company Pvt Limited ICRA A L&T Finance Limited ICRA A Redington (India) Limited CRISIL A Kotak Securities Limited ICRA A TV18 Broadcast Limited ICRA A Talwandi Sabo Power Limited CRISIL A1+(SO) 0.59 Bharti Telecom Limited CRISIL A Adani Transmission Limited ICRA A IndoStar Capital Finance Limited CRISIL A Barclays Invest & Loans India Limited CRISIL A HDFC Limited ICRA A ICICI Home Finance Company Limited ICRA A Bajaj Housing Finance Limited CRISIL A TGS Investment & Trade Pvt Limited ICRA A Kotak Mahindra Investments Limited ICRA A Future Retail Limited CARE A Aditya Birla Housing Finance Limited ICRA A Varroc Engineering Pvt Limited ICRA A HDFC Limited CRISIL A Essel Mining And Industries Ltd ICRA A Adani Ports and Special Economic Zone Limited ICRA A Piramal Housing Finance Pvt Limited CRISIL A Infina Finance Private Limited CRISIL A Tube Investments of India Limited ICRA A JM Financial Services Limited ICRA A IDFC Infrastructure Finance Limited ICRA A Small Industries Dev Bank of India CARE A TREASURY BILL Days Tbill Sovereign Days Tbill Sovereign Days TBILL Sovereign Days Tbill Sovereign Days Tbill Sovereign Days Tbill Sovereign 0.62 TOTAL DEBT 2.47 CORPORATE BOND 0.54 Shriram Transport Finance Company Limited CRISIL AA ECL Finance Limited ICRA AA 0.18 Indiabulls Housing Finance Limited BWR AAA 0.14 Dewan Housing Finance Corporation Limited BWR AAA 0.02 STATE GOVERNMENT BOND Sovereign 1.93 NET CURRENT ASSETS NET ASSETS 100% ^Certificate of Deposit/Commercial Paper/Treasury Bill EXIT LOAD NIL 14 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality Credit Risk Rating [ICRA] A1+mfs^ AVERAGE MATURITY * 259 days MODIFIED DURATION * 234 days YIELD (YIELD TO MATURITY & ) 7.82% 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 Date PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns CARE A1+/ CRISIL A1+/ ICRA A1+/ ICRA A1+(SO)/ BWR AAA/ CARE AAA/ CRISIL AAA/ ICRA AAA(SO)/ IND AAA & Equivalent % CRISIL AA/ ICRA AA % BWR AA+/ CRISIL AA+/ ICRA AA+/ IND AA % CARE AA-/ ICRA AA-/ IND AA % CRISIL Liquid Fund Index CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Liquid Fund Index Regular Plan Retail Plan Direct Plan Dividend (` Per Dividend (` Per Dividend (` Per unit) unit) unit) Options Record Date CRISIL 1 Year T-Bill Index Axis Treasury Advantage Fund - Growth 28-Feb-17 Last 1 Year 6.26% 6.68% 5.65% 10,626 10,668 10, Feb-15 Last 3 Years 7.63% 7.36% 6.96% 12,474 12,380 12, Feb-13 Last 5 Years 8.19% 8.08% 7.05% 14,823 14,750 14,058 Since Inception (9-Oct-09) 8.07% 7.63% 6.49% 19,190 18,542 16,948 Axis Treasury Advantage Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 6.94% 6.68% 5.65% 10,694 10,668 10, Feb-15 Last 3 Years 8.11% 7.36% 6.96% 12,641 12,380 12, Feb-13 Last 5 Years 8.66% 8.08% 7.05% 15,152 14,750 14,058 Since Inception (1-Jan-13) 8.66% 8.08% 7.08% 15,356 14,932 14,237 Axis Treasury Advantage Fund - Retail Plan - Growth 28-Feb-17 Last 1 Year 5.74% 6.68% 5.65% 10,574 10,668 10, Feb-15 Last 3 Years 6.99% 7.36% 6.96% 12,252 12,380 12, Feb-13 Last 5 Years 7.47% 8.08% 7.05% 14,338 14,750 14,058 Since Inception (3-Mar-10) 7.60% 7.87% 6.68% 17,958 18,323 16,777 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). Feb 26, , , , , , , Monthly Jan 25, , , , , , , Dividend Dec 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. * 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. RATING % OF ASSETS TOTAL MONEY MARKET INSTRUMENTS^ BANKS HDFC Bank Limited CARE A IndusInd Bank Limited CRISIL A Kotak Mahindra Bank Limited CRISIL A NABARD CRISIL A Yes Bank Limited ICRA A ICICI Bank Limited ICRA A OTHERS Adani Ports and Special Economic Zone Limited ICRA A Tata Power Company Limited CRISIL A HDFC Limited CRISIL A Indiabulls Housing Finance Limited CRISIL A Reliance Industries Limited CRISIL A HDFC Limited ICRA A Turquoise Invest & Finance Pvt Limited CRISIL A Trapti Trading & Invest Pvt Limited ICRA A PASS THROUGH CERTIFICATE 1.65 Sansar Trust ICRA AAA(SO) 0.86 Sansar Trust ICRA A1+(SO) 0.79 TOTAL DEBT CORPORATE BOND NABARD CRISIL AAA 7.80 Reliance Jio Infocomm Limited CRISIL AAA 4.23 Piramal Finance Limited ICRA AA 4.22 Edelweiss Commodities Services Limited CRISIL AA 3.15 Hinduja Leyland Finance Limited CARE AA JM Financial Products Limited CRISIL AA 1.68 Daimler Financial Services India Pvt Limited IND AAA 1.68 Indiabulls Housing Finance Limited BWR AAA 1.54 Muthoot Finance Limited CRISIL AA 1.34 India Infoline Finance Limited ICRA AA 1.26 HDFC Limited CRISIL AAA 1.22 LIC Housing Finance Limited CRISIL AAA 1.05 Tata Capital Financial Services Limited CRISIL AA Mahindra Rural Housing Finance IND AA Tata Motors Finance Limited CRISIL AA 1.05 Magma Fincorp Limited ICRA AA Rural Electrification Corporation Limited CRISIL AAA 1.03 UPL Limited BWR AA Power Finance Corporation Limited CRISIL AAA 0.43 Cholamandalam Investment and Finance Company Limited ICRA AA 0.42 IndoStar Capital Finance Limited IND AA Small Industries Dev Bank of India CARE AAA 0.08 ZERO COUPON BOND 8.09 Dewan Housing Finance Corporation Limited CARE AAA 6.41 Sundaram BNP Paribas Home Finance Limited ICRA AA JM Financial Products Limited CRISIL AA 0.55 NET CURRENT ASSETS 3.05 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper EXIT LOAD NIL 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. 6, Cr. Crisil Short Term Bond Fund Index Internal Rate Sensitivity Med Mid Credit Quality Credit Risk Rating [ICRA]AAAmfs $ AVERAGE MATURITY * 1.9 years MODIFIED DURATION * 1.6 years YIELD (YIELD TO MATURITY & ) 8.06% Corporate Bond % Total Money Market Instruments* % State Government Bond % Zero Coupon Bond % Government Bond % * Includes Net Current Assets Mr. Devang Shah Work experience: 13 years. 5th November COMPOSITION BY ASSETS COMPOSITION BY RATING Date PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns CARE A1+/ CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ CRISIL AAA(SO)/ ICRA AAA/ IND AAA & Equivalent % CARE AA+/ CRISIL AA+/ ICRA AA+/ IND AA % SOV % CRISIL AA/ ICRA AA % CRISIL Short Term Bond Fund Index CRISIL 1 Year T-Bill Index Current Value of `10,000 invested Scheme CRISIL Short Term Bond Fund Index Regular Plan Retail Plan Direct Plan CRISIL 1 Year T-Bill Index Benchmark Returns) Axis Short Term Fund - Growth 28-Feb-17 Last 1 Year 5.42% 5.67% 5.65% 10,542 10,567 10, Feb-15 Last 3 Years 7.53% 7.77% 6.96% 12,439 12,523 12, Feb-13 Last 5 Years 8.07% 8.49% 7.05% 14,745 15,030 14,058 Since Inception (22-Jan-10) 7.99% 7.99% 6.62% 18,643 18,653 16,818 Axis Short Term Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 6.16% 5.67% 5.65% 10,616 10,567 10, Feb-15 Last 3 Years 8.34% 7.77% 6.96% 12,721 12,523 12, Feb-13 Last 5 Years 8.93% 8.49% 7.05% 15,338 15,030 14,058 Since Inception (1-Jan-13) 8.87% 8.44% 7.08% 15,505 15,192 14,237 Axis Short Term Fund - Retail Plan - Growth 28-Feb-17 Last 1 Year 5.42% 5.67% 5.65% 10,542 10,567 10, Feb-15 Last 3 Years 7.53% 7.77% 6.96% 12,439 12,523 12, Feb-13 Last 5 Years 8.08% 8.49% 7.05% 14,750 15,030 14,058 Since Inception (2-Mar-10) 7.94% 8.08% 6.68% 18,433 18,615 16,777 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). Options Record Date Feb 26, Monthly Jan 25, Dividend Dec 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. * 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. RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Power Finance Corporation Limited CRISIL AAA HDFC Limited CRISIL AAA Rural Electrification Corporation Limited CRISIL AAA 9.45 LIC Housing Finance Limited CRISIL AAA 4.43 NABARD CRISIL AAA 3.97 Tata Sons Ltd CRISIL AAA 2.74 Power Grid Corporation of India Limited CRISIL AAA 2.44 Indiabulls Housing Finance Limited BWR AAA 2.21 Cholamandalam Investment and Finance Company Limited ICRA AA 2.21 Small Industries Dev Bank of India CARE AAA 2.08 HDB Financial Services Limited CRISIL AAA 2.02 Reliance Jio Infocomm Limited CRISIL AAA 2.02 Reliance Industries Limited CRISIL AAA 1.74 NABARD IND AAA 1.69 Shriram Transport Finance Company Limited CRISIL AA Reliance Utilities & Power Pvt Limited CRISIL AAA 1.42 Mahindra & Mahindra Financial Services Limited IND AAA 1.29 Tata Capital Financial Services Limited CRISIL AA Vodafone Mobile Services Limited CRISIL AA 1.13 LIC Housing Finance Limited CARE AAA 1.12 Nirma Limited CRISIL AA 1.06 Indiabulls Housing Finance Limited ICRA AAA 0.95 NHPC Limited ICRA AAA 0.92 Tata Motors Limited CARE AA L&T Housing Finance CARE AA Dewan Housing Finance Corporation Limited CARE AAA 0.76 Gruh Finance Limited CRISIL AAA 0.64 Dewan Housing Finance Corporation Limited BWR AAA 0.57 IDFC Bank Limited ICRA AAA 0.57 Daimler Financial Services India Pvt Limited IND AAA 0.57 Oriental Nagpur Betul way Limited CRISIL AAA(SO) 0.56 Tata Capital Financial Services Limited ICRA AA L&T Infrastructure Finance Company Limited CARE AA Mahindra Rural Housing Finance CRISIL AA National ways Auth Of Ind CRISIL AAA 0.24 Bajaj Finance Limited CARE AAA 0.18 Tube Investments of India Limited CRISIL AA 0.16 Bhopal Dhule Transmission Company Limited CRISIL AAA 0.16 Export Import Bank of India CRISIL AAA 0.10 Indiabulls Housing Finance Limited CARE AAA 0.09 Mahindra Rural Housing Finance IND AA STATE GOVERNMENT BOND Sovereign 4.38 ZERO COUPON BOND 2.69 Dewan Housing Finance Corporation Limited CARE AAA 1.76 Sundaram BNP Paribas Home Finance Limited ICRA AA Aditya Birla Fashion and Retail Limited CRISIL AA 0.29 Mahindra & Mahindra Financial Services Limited IND AAA 0.19 Axis Finance Limited IND AAA 0.02 HDB Financial Services Limited CRISIL AAA GOVERNMENT BOND Sovereign 1.71 TOTAL MONEY MARKET INSTRUMENTS^ BANKS HDFC Bank Limited CARE A IndusInd Bank Limited CRISIL A ICICI Bank Limited ICRA A Yes Bank Limited ICRA A Small Industries Dev Bank of India CARE A NET CURRENT ASSETS 3.60 NET ASSETS 100% ^Certificate of Deposit EXIT LOAD NIL (w.e.f. 28th August 2015) 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality AVERAGE MATURITY* 4.5 years MODIFIED DURATION* 3.1 years YIELD (YIELD TO MATURITY & ) 8.22% Mr. R. Sivakumar Work experience: 19 years. inception Mr. Devang Shah Work experience: 13 years. 5th November RATING % OF ASSETS TOTAL DEBT CORPORATE BOND HDFC Limited CRISIL AAA 8.54 Rural Electrification Corporation Limited CRISIL AAA 5.03 Syndicate Bank IND AA Allahabad Bank CARE A Union Bank of India IND AA 4.01 Punjab National Bank BWR AA 4.00 Renew Power Venture Pvt Limited CARE A COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % CARE A1+/ CRISIL A1+/ CRISIL AAA/ CRISIL AAA(SO)/ ICRA Government Bond % AAA(SO) & Equivalent % SOV % IND AA/ Total Money Market Instruments* % Pass Through Certificate % BWR AA -8.01% BWR A+(SO)/ CARE A % CRISIL State Government Bond % AA-/ IND AA % ICRA A(SO)/ IND A(SO) % Reduced Face Value Bonds - Non Amortisation % * Includes Net Current Assets Date PERFORMANCE (as on 28th February 2018) Period Scheme Returns CRISIL Composite Bond Fund Index CRISIL 10 year Gilt Index Current Value of `10,000 invested Scheme CRISIL Composite Bond Fund Index CRISIL 10 year Gilt Index Axis Dynamic Bond Fund - Growth 28-Feb-17 Last 1 Year 3.64% 4.25% -1.45% 10,364 10,425 9, Feb-15 Last 3 Years 6.91% 7.60% 5.56% 12,223 12,463 11, Feb-13 Last 5 Years 7.95% 8.26% 5.84% 14,661 14,873 13,283 Since Inception (27-Apr-11) 8.38% 8.39% 6.39% 17,351 17,357 15,278 Axis Dynamic Bond Fund - Direct Plan -Growth 28-Feb-17 Last 1 Year 4.55% 4.25% -1.45% 10,455 10,425 9, Feb-15 Last 3 Years 8.00% 7.60% 5.56% 12,603 12,463 11, Feb-13 Last 5 Years 9.19% 8.26% 5.84% 15,526 14,873 13,283 Since Inception (1-Jan-13) 9.25% 8.27% 6.08% 15,790 15,070 13,560 Past performance may or may not be sustained in future. Calculations are based on Growth Option. Since inception returns is calculated on ` 10 invested at inception. Calculations are based on Growth Option. 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 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 1.36 India Infrastructure Fin Co Ltd CRISIL AAA 0.93 GOVERNMENT BOND Sovereign STATE GOVERNMENT BOND Sovereign 8.84 REDUCED FACE VALUE BONDS - NON AMORTISATION 0.98 Ess Kay Fincorp Limited IND A(SO) 0.98 TOTAL MONEY MARKET INSTRUMENTS^ BANKS Small Industries Dev Bank of India CARE A NABARD CRISIL A PASS THROUGH CERTIFICATE Sansar Trust ICRA AAA(SO) 6.38 IIERT TRUST CRISIL AAA(SO) 3.33 Solstice Trust ICRA A(SO) 1.02 NET CURRENT ASSETS 6.13 NET ASSETS 100% ^Certificate of Deposit DIVIDENDS Options Record Date Regular Plan Direct Plan Sep 25, Mar 27, Half Yearly Dividend Sep 26, Sep 28, Dec 26, Quarterly Dividend Sep 25, Jun 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. 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality AVERAGE MATURITY* 1.1 years MODIFIED DURATION* 1 year YIELD (YIELD TO MATURITY & ) 8.59% Mr. Devang Shah Work experience: 13 years. 13th July COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % CARE A1+/ CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL Total Money Market Instruments* % AAA/ CRISIL AAA(SO)/ ICRA AAA(SO) & Equivalent % Zero Coupon Bond % Pass Through Certificate % CARE AA/ CRISIL AA/ ICRA AA/ IND AA/ BWR AA % BWR AA-(SO)/ CARE AA-/ ICRA AA-/ IND AA-/ IND AA-(SO) % Reduced Face Value Bonds - Non BWR AA % BWR A+(SO)/ CARE A % Amortisation % IND A(SO) % * Includes Net Current Assets NIL Options Monthly Dividend DIVIDENDS Record Date EXIT LOAD Regular Plan Direct Plan Feb 26, Jan 25, Dec 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. * 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. Since scheme have not completed one year, performance details for the same are not provided. RATING % OF ASSETS TOTAL DEBT CORPORATE BOND UPL Limited BWR AA Dewan Housing Finance Corporation Limited BWR AAA 5.93 Piramal Finance Limited ICRA AA 5.93 Indiabulls Housing Finance Limited BWR AAA 3.29 HDFC Limited CRISIL AAA 3.29 India Infoline Finance Limited ICRA AA 3.29 Oriental Nagpur Betul way Limited CRISIL AAA(SO) 3.28 Nirma Limited CRISIL AA 3.27 Tata Power Company Limited ICRA AA Renew Power Venture Pvt Limited CARE A Muthoot Finance Limited CRISIL AA 2.30 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 1.96 Syndicate Bank IND AA Small Industries Dev Bank of India CARE AAA 1.63 Magma Fincorp Limited ICRA AA Union Bank of India IND AA 1.61 Punjab National Bank BWR AA 1.61 Hinduja Leyland Finance Limited CARE AA ZERO COUPON BOND Aditya Birla Fashion and Retail Limited CRISIL AA 3.85 Edelweiss Commodities Services Limited ** CARE AA 3.76 JM Financial Products Limited CRISIL AA 3.63 Sprit Textile Pvt Limited BWR AA-(SO) 3.44 Emami Infrastructure Limited IND AA-(SO) 2.27 REDUCED FACE VALUE BONDS - NON AMORTISATION 0.94 Ess Kay Fincorp Limited IND A(SO) 0.94 TOTAL MONEY MARKET INSTRUMENTS^ BANKS HDFC Bank Limited CARE A IndusInd Bank Limited CRISIL A Ujjivan Small Finance Bank Limited CRISIL A Yes Bank Limited ICRA A OTHERS 3.13 Trapti Trading & Invest Pvt Limited ICRA A Indiabulls Housing Finance Limited CRISIL A PASS THROUGH CERTIFICATE 5.15 IIERT TRUST CRISIL AAA(SO) 2.46 Sansar Trust ICRA AAA(SO) 1.56 MFL Securitisation Trust CRISIL AAA(SO) 1.13 NET CURRENT ASSETS 3.48 NET ASSSET 100% ^Certificate of Deposit/Commercial Paper/ ** Secured by shares of Emami Ltd 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality AVERAGE MATURITY * 2.3 years MODIFIED DURATION * 1.9 years YIELD (YIELD TO MATURITY & ) 8.94% Options Record Date Mr. Devang Shah Work experience: 13 years. 5th November Regular Plan COMPOSITION BY ASSETS COMPOSITION BY RATING Corporate Bond % BWR A1+(SO)/ CARE A1+/ CRISIL A1+/ BWR AAA/ CARE AAA/ CRISIL Pass Through Certificate % AAA/ CRISIL AAA(SO)/ ICRA AAA/ ICRA AAA(SO) & Equivalent % Total Money Market Instruments*- 6.19% Zero Coupon Bond % CARE AA/ CARE AA(SO)/ CRISIL AA/ ICRA AA/ IND AA/ BWR AA % Reduced Face Value Bonds - Non Amortisation % BWR AA-(SO)/ CARE AA-/ CRISIL AA-/ ICRA AA-/ IND AA % Government Bond % BWR A+(SO)/ CARE A+/ ICRA A % CRISIL AA+/ ICRA State Government Bond % AA+/ IND AA % BWR A/ ICRA A(SO)/ IND A(SO) % * Includes Net Current Assets SOV % Date PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns CRISIL Composite Bond Fund Index CRISIL 10 year Gilt Index Benchmark Returns) Current Value of `10,000 invested Scheme CRISIL Composite Bond Fund Index Direct Plan CRISIL 10 year Gilt Index Axis Regular Savings Fund - Growth 28-Feb-17 Last 1 Year 7.12% 4.25% -1.45% 10,712 10,425 9, Feb-15 Last 3 Years 7.99% 7.60% 5.56% 12,600 12,463 11, Feb-13 Last 5 Years 8.85% 8.26% 5.84% 15,281 14,873 13,283 Since Inception (28-Mar-12) 9.07% 8.46% 6.86% 16,731 16,180 14,813 Axis Regular Savings Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 7.82% 4.25% -1.45% 10,782 10,425 9, Feb-15 Last 3 Years 8.90% 7.60% 5.56% 12,922 12,463 11, Feb-13 Last 5 Years 9.80% 8.26% 5.84% 15,965 14,873 13,283 Since Inception (7-Jan-13) 9.71% 8.21% 5.94% 16,108 15,006 13,460 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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 Sep 25, Mar 27, Sep 26, Mar 28, Sep 25, Quarterly Dividend Dec 26, Jun 27, Mar 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. 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 Indiabulls Housing Finance Limited BWR AAA 4.27 Dewan Housing Finance Corporation Limited BWR AAA 3.96 Nuvoco Vistas Corporation Limited CRISIL AA 3.56 Oriental Nagpur Betul way Limited CRISIL AAA(SO) 3.17 Tube Investments of India Limited CRISIL AA 3.11 Tata Power Company Limited IND AA 3.10 Adani Transmission Limited IND AA Reliance Jio Infocomm Limited CRISIL AAA 2.37 IndoStar Capital Finance Limited CARE AA Bhopal Dhule Transmission Company Limited CRISIL AAA 2.32 Power Finance Corporation Limited CRISIL AAA 2.12 Renew Power Venture Pvt Limited CARE A Edelweiss Commodities Services Limited ICRA AA 1.97 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 1.97 JK Lakshmi Cement Limited CARE AA 1.96 HDFC Limited CRISIL AAA 1.93 Punjab National Bank BWR AA 1.85 Bank of Baroda CARE AA 1.81 Union Bank of India IND AA 1.78 Piramal Enterprises Limited ICRA AA 1.73 Vijaya Bank ICRA AA Rural Electrification Corporation Limited CRISIL AAA 1.48 Birla Corporation Limited ICRA AA 1.42 Syndicate Bank IND AA Magma Fincorp Limited ICRA AA State Bank of India CRISIL AA ICICI Bank Limited ICRA AA Dalmia Cement (Bharat) Limited ICRA AA 1.18 Hinduja Leyland Finance Limited CARE AA JM Financial Products Limited CRISIL AA 1.09 Vedanta Limited CRISIL AA 1.03 Cyquator Media Services Private Limited # BWR A1+(SO) 0.95 Nirma Limited CRISIL AA 0.94 PVR Limited CRISIL AA Ujjivan Small Finance Bank Limited ICRA A India Infoline Finance Limited ICRA AA 0.79 Mahindra Rural Housing Finance IND AA Allahabad Bank CARE A Gruh Finance Limited CRISIL AAA 0.77 Tata Power Company Limited CRISIL AA Vodafone Mobile Services Limited CRISIL AA 0.70 Reliance Gas Transportation Infrastructure Limited CRISIL AAA 0.69 Edelweiss Commodities Services Limited CRISIL AA 0.63 Hindalco Industries Limited CRISIL AA 0.57 Hansdeep Industries & Trading Company Limited CARE AA(SO) 0.57 ECL Finance Limited ICRA AA 0.40 Equitas Small Finance Bank Limited CARE A JM Financial Products Limited ICRA AA 0.39 Indiabulls Housing Finance Limited ICRA AAA 0.39 Tata Power Company Limited ICRA AA Allahabad Bank BWR A 0.23 Piramal Finance Limited ICRA AA 0.16 Muthoot Finance Limited CRISIL AA 0.08 ZERO COUPON BOND 4.93 Aditya Birla Fashion and Retail Limited CRISIL AA 1.39 Amri Hospitals Limited ## BWR A+(SO) 1.35 Dewan Housing Finance Corporation Limited CARE AAA 1.08 Sprit Textile Pvt Limited BWR AA-(SO) 0.50 Edelweiss Commodities Services Limited CARE AA 0.45 JM Financial Products Limited CRISIL AA 0.17 REDUCED FACE VALUE BONDS - NON AMORTISATION 1.92 Subros Limited ICRA A Ess Kay Fincorp Limited IND A(SO) 0.75 GOVERNMENT BOND SOVEREIGN 0.44 STATE GOVERNMENT BOND SOVEREIGN 0.31 PASS THROUGH CERTIFICATE 9.16 Sansar Trust ICRA AAA(SO) 3.50 IIERT TRUST CRISIL AAA(SO) 2.19 MFL Securitisation Trust CRISIL AAA(SO) 1.75 Solstice Trust ICRA A(SO) 1.72 TOTAL MONEY MARKET INSTRUMENTS^ 2.23 BANKS 2.23 HDFC Bank Limited CRISIL A Ujjivan Small Finance Bank Limited CRISIL A NET CURRENT ASSETS 3.96 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper/ # Secured by shares of Emami Ltd/ ## 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: 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality AVERAGE MATURITY * 2.3 years MODIFIED DURATION * 1.8 years YIELD (YIELD TO MATURITY & ) 8.85% 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/ BWR Pass Through Certificate % AA % BWR A1+(SO)/ CRISIL A1+/ BWR AAA/ CARE AAA/ CRISIL State Government Bond % Total Money Market Instruments*- 5.05% AAA/ CRISIL AAA(SO)/ ICRA AAA/ ICRA AAA(SO) & Equivalent % Zero Coupon Bond % BWR AA-(SO)/ CARE AA-/ CRISIL AA-/ ICRA AA-/ IND AA % Government Bond % BWR A+(SO)/ CARE A+/ ICRA A % SOV- 7.09% Reduced Face Value Bonds - Non Amortisation % BWR AA+/ CARE AA+/ CRISIL AA+/ ICRA AA+/ IND AA % * Includes Net Current Assets ICRA A(SO)/ IND A(SO) % Date PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Scheme Returns CRISIL Short- Term Bond Fund Index Index CRISIL 1 Year T-Bill Current Value of `10,000 invested Scheme CRISIL Short- Term Bond Fund Index Index CRISIL 1 Year T-Bill Axis Fixed Income Opportunities Fund - Growth Feb Last 1 Year 5.89% 5.67% 5.65% 10,589 10,567 10,565 Feb Last 3 Years 7.86% 7.77% 6.96% 12,553 12,523 12,243 Since Inception (15-Jul-14) 8.62% 8.23% 7.23% 13,496 13,324 12,884 Axis Fixed Income Opportunities Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 7.35% 5.67% 5.65% 10,735 10,567 10, Feb-15 Last 3 Years 9.18% 7.77% 6.96% 13,021 12,523 12,243 Since Inception (15-Jul-14) 9.86% 8.23% 7.23% 14,063 13,324 12,884 Past performance may or may not be sustained in future. Calculations are based on Growth Option. Since inception returns are calculated on ` 10 invested at inception. The performance data for 3 years & 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). Regular Plan Direct Plan Options Record Date Feb 26, Monthly Dividend Jan 25, Dec 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. * 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. RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Dewan Housing Finance Corporation Limited BWR AAA 5.28 Power Finance Corporation Limited CRISIL AAA 3.49 Nirma Limited CRISIL AA 3.24 Dalmia Cement (Bharat) Limited ICRA AA 2.88 Piramal Enterprises Limited ICRA AA 2.77 Birla Corporation Limited ICRA AA 2.75 Indiabulls Housing Finance Limited BWR AAA 2.48 Nuvoco Vistas Corporation Limited CRISIL AA 2.37 Muthoot Finance Limited CRISIL AA 2.37 PVR Limited CRISIL AA Hinduja Leyland Finance Limited CARE AA Renew Power Venture Pvt Limited CARE A Bank of Baroda CARE AA 2.10 Suhani Trading And Investment Consultants Private Limited BWR A+(SO) 2.10 Oriental Nagpur Betul way Limited CRISIL AAA(SO) 2.07 LIC Housing Finance Limited CRISIL AAA 2.00 Cyquator Media Services Private Limited # BWR A1+(SO) 2.00 JM Financial Products Limited CRISIL AA 1.95 Adani Transmission Limited IND AA ECL Finance Limited ICRA AA 1.85 JK Lakshmi Cement Limited CARE AA 1.83 Ujjivan Small Finance Bank Limited ICRA A IndoStar Capital Finance Limited CARE AA Tata Power Company Limited IND AA 1.54 India Infoline Finance Limited ICRA AA 1.32 Piramal Finance Limited ICRA AA 1.31 Indiabulls Housing Finance Limited ICRA AAA 1.31 Hansdeep Industries & Trading Company Limited CARE AA(SO) 1.24 UPL Limited BWR AA Union Bank of India IND AA 1.03 Bhopal Dhule Transmission Company Limited CRISIL AAA 1.03 State Bank of India CRISIL AA HDFC Limited CRISIL AAA 0.79 Syndicate Bank IND AA Vodafone Mobile Services Limited CRISIL AA 0.78 Punjab National Bank BWR AA 0.77 Vedanta Limited CRISIL AA 0.63 Reliance Jio Infocomm Limited CRISIL AAA 0.63 Magma Fincorp Limited ICRA AA Tata Motors Limited CARE AA Edelweiss Commodities Services Limited ICRA AA 0.53 Power Grid Corporation of India Limited CRISIL AAA 0.31 ICICI Bank Limited ICRA AA Mahindra Rural Housing Finance IND AA Indiabulls Housing Finance Limited CARE AAA 0.05 IDFC Bank Limited ICRA 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 5.58 ZERO COUPON BOND 4.35 Amri Hospitals Limited ~ BWR A+(SO) 2.10 Sprit Textile Pvt Limited BWR AA-(SO) 0.99 Aditya Birla Fashion and Retail Limited CRISIL AA 0.62 SVL Limited ## ICRA AA(SO) 0.49 Edelweiss Commodities Services Limited CARE AA 0.15 GOVERNMENT BOND Sovereign 1.52 REDUCED FACE VALUE BONDS - NON AMORTISATION 1.48 Ess Kay Fincorp Limited IND A(SO) 0.96 Subros Limited ICRA A PASS THROUGH CERTIFICATE 8.83 Sansar Trust ICRA AAA(SO) 3.49 IIERT TRUST CRISIL AAA(SO) 2.37 Solstice Trust ICRA A(SO) 1.72 MFL Securitisation Trust CRISIL AAA(SO) 1.25 TOTAL MONEY MARKET INSTRUMENTS^ 0.52 BANKS 0.52 Ujjivan Small Finance Bank Limited CRISIL A NET CURRENT ASSETS 4.53 NET ASSETS 100% ^Commercial Paper/ # Secured by shares of Zee Entertainment Enterprises Ltd/ ~ Secured by shares of Emami Ltd/ ## Backed by corporate guarantee of Shriram Transport Finance Company Limited EXIT LOAD (w.e.f. 10th November 2017) 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 20 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 Med Mid Credit Quality AVERAGE MATURITY* 9.2 years MODIFIED DURATION* 6.2 years YIELD (YIELD TO MATURITY & ) 7.76% 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 3.93 NET CURRENT ASSETS 2.86 COMPOSITION BY ASSETS COMPOSITION BY RATING Government Bond %, Total Money Market Instruments* % SOV & Equivalent % NET ASSETS 100% * Includes Net Current Assets PERFORMANCE (as on 28th February 2018) Current Value of `10,000 invested Date Options Record Date Period Scheme Regular Plan CRISIL 10 Year Gilt Index Scheme Direct Plan CRISIL 10 Year Gilt Index Axis Constant Maturity 10 Year Fund - Growth 28-Feb-17 Last 1 Year 1.30% -1.45% 10,130 9, Feb-15 Last 3 Years 5.60% 5.56% 11,779 11, Feb-13 Last 5 Years 6.20% 5.84% 13,513 13,283 Since Inception (23-Jan-12) 6.47% 6.41% 14,661 14,613 Axis Constant Maturity 10 Year Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 1.84% -1.45% 10,184 9, Feb-15 Last 3 Years 6.15% 5.56% 11,963 11, Feb-13 Last 5 Years 6.74% 5.84% 13,860 13,283 Since Inception (1-Jan-13) 6.87% 6.08% 14,091 13,560 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). DIVIDENDS Sep 25, Mar 27, Half Yearly Dividend Sep 26, 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. * 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. EXIT LOAD NIL 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 Fund Index Internal Rate Sensitivity Med Mid Credit Quality Credit Risk Rating [ICRA] AAAmfs $ AVERAGE MATURITY* 294 days MODIFIED DURATION* 262 days YIELD (YIELD TO MATURITY & ) 7.60% Mr. Aditya Pagaria Work experience: 11 years. 13th August COMPOSITION BY ASSETS COMPOSITION BY RATING Total Money Market Instruments* % Corporate Bond % Zero Coupon Bond % * Includes Net Current Assets Date Options PERFORMANCE (as on 28th February 2018) Period DIVIDENDS Record Date Regular Plan Scheme Returns CARE A1+/ CRISIL A1+/ ICRA A1+/ BWR AAA/ CARE AAA/ CRISIL AAA/ ICRA AAA/ IND AAA & Equivalent % CARE AA/ CRISIL AA/ ICRA AA % CARE AA % CRISIL AA+/ ICRA AA+/ IND AA % CRISIL Short- Term Bond Fund Index CRISIL 1 Year T-Bill Index Direct Plan 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-Feb-17 Last 1 Year 6.76% 5.67% 5.65% 10,676 10,567 10, Feb-15 Last 3 Years 7.85% 7.77% 6.96% 12,550 12,523 12, Feb-13 Last 5 Years 8.43% 8.49% 7.05% 14,992 15,030 14,058 Since Inception (8-Jun-12) 8.42% 8.52% 7.14% 15,890 15,971 14,847 Axis Banking & PSU Debt Fund - Direct Plan - Growth 28-Feb-17 Last 1 Year 6.97% 5.67% 5.65% 10,697 10,567 10, Feb-15 Last 3 Years 8.04% 7.77% 6.96% 12,617 12,523 12, Feb-13 Last 5 Years 8.63% 8.49% 7.05% 15,130 15,030 14,058 Since Inception (1-Jan-13) 8.50% 8.44% 7.08% 15,236 15,192 14,237 Past performance may or may not be sustained in future. Calculations are based on Growth Option. 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). Feb 26, , , , , Monthly Dividend Jan 25, , , , , Dec 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. * 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. RATING % OF ASSETS TOTAL DEBT CORPORATE BOND Tata Sons Ltd CRISIL AAA 4.63 Dewan Housing Finance Corporation Limited BWR AAA 4.08 Power Finance Corporation Limited CRISIL AAA 3.94 Small Industries Dev Bank of India CARE AAA 3.28 IDFC Bank Limited ICRA AAA 3.27 NABARD CRISIL AAA 3.26 NABARD IND AAA 3.25 IndoStar Capital Finance Limited CARE AA JM Financial Products Limited CRISIL AA 2.60 NHPC Limited ICRA AAA 2.57 Hindustan Petroleum Corporation Limited CRISIL AAA 1.96 Power Grid Corporation of India Limited CRISIL AAA 1.33 Rural Electrification Corporation Limited CRISIL AAA 1.28 Indiabulls Housing Finance Limited BWR AAA 1.05 ICICI Bank Limited ICRA AA Bank of Baroda CARE AA 0.65 State Bank of India CRISIL AA Piramal Finance Limited ICRA AA 0.65 Mahindra Rural Housing Finance IND AA HDFC Bank Limited CRISIL AA ZERO COUPON BOND 2.99 IDFC Bank Limited ICRA AAA 2.99 TOTAL MONEY MARKET INSTRUMENTS^ BANKS IndusInd Bank Limited CRISIL A HDFC Bank Limited CARE A Yes Bank Limited ICRA A Yes Bank Limited CARE A ICICI Bank Limited ICRA A Small Industries Dev Bank of India CARE A IDFC Bank Limited ICRA A OTHERS Export Import Bank of India CRISIL A HDFC Limited CRISIL A NET CURRENT ASSETS 2.44 NET ASSETS 100% ^Certificate of Deposit/Commercial Paper EXIT LOAD NIL (w.e.f. 14th July 2014) 22 Please refer to page no 30, 32-33, for, TER, Riskometer & Statutory Details.

23 HYBRID OUTLOOK MARCH 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. 17.9% 6.87% Key highlights 7.73% 10 yr G-Sec : Last 1 year Quick Take - Fixed Income Bonds continue to remain under pressure as 10-year benchmark yield goes over 7.70%. The hawkish tone of the MPC will keep the market cautious in the run up to the forthcoming RBI policy. The demand/supply dynamic in the domestic markets coupled with global bond movements are likely to set the tone for the bond markets for the coming months. We continue to advise investors to stay invested in short to medium term strategies and to start actively looking at credit funds. Equity markets faced stiff headwinds largely on global factors this month. Globally, India was one of the worst performers among the emerging basket. Domestically, local factors including the unearthing of the PNB frauds have had a negative impact on the markets. The S&P BSE Sensex & NIFTY 50 fell 5% for the month. Banking (-8.6%), capital goods (-6.3%) and consumer durables (-5.7%) fell the most among sector indices. FPIs sold US$1.5bn during the month while DIIs bought Rs. 16,500 Cr. worth of equities. Mutual fund inflows continued to remain positive for the 22nd month in a row. SIP collections for the month of January 2018 stood at Rs. 6,644 Cr. According to AMFI, mutual fund assets under management have grown 6.5x in the last 11 years highlighting the retail participation in the equity and debt markets. Company results for Q3 FY 18 have seen significant improvement across sectors the highlight being recovery in the consumer businesses and housing sector, both partly helped by the low demonetization base. Consensus NIFTY earnings also did not see any negative commentaries, highlighting that there is confidence in a likely step-up in growth going forward. Key Events During the Month India GDP The World`s Fastest Growing Economy India GDP growth climbed to 7.2%YoY from a revised 6.5% growth last quarter as negative supply shocks from demonetization and GST appear to have faded away as reported by the CSO. In addition, it also revised the FY18 advance estimate for GDP marginally by 10bps to 6.6%, thus implying a GDP growth of 7.1% in 4QFY18. Minutes of the MPC The Hawks descend on Mint Street The minutes of the February MPC meeting reinstated the cautious approach of all members as inflation uncertainty has increased. Amid increased inflation uncertainty, possible closure of output gap with improved growth also appears to worry a few members. While the tone RBI policy earlier last month was neutral, the hawkish tones of the MPC minutes suggests a possible increase in interest rates going forward. India 10 Year Continued Sell Off! The GILT markets continue to remain volatile on the back of global headwinds, hawkish comments from the MPC and concerns over the fiscal math in the recent budget announcements. The 10 year ended at 7.73% for February 2018 v/s 7.43% in January Liquidity in the market has seen a significant decline as market participants have accumulated large MTM loses on their portfolios and lack appetite for long bonds. Inflation Above the RBI target Headline consumer price index (CPI) for the month of January showed a downward tick to 5.07% vis-à-vis previous month s reading of 5.2% owing to lower food prices. We continue to believe that inflation will range between 4.5% 5% for FY 19. Brent crude prices remained range bound between US$ 60-70/bbl adding to the inflation math. US Rate Hikes Multiple Rate Hikes likely Jerome Powell, the new Fed chair in his first address to the US senate is likely to follow his predecessor s actions on rate hikes. While markets have been looking for clarity over whether the Fed will accelerate the pace of its rate increases this year, we anticipate 3-4 hikes in the current calendar year Market View Equity Markets The economy is well positioned with a solid macro foundation, political stability and positive global focus. This combined with structural reforms is likely to push growth higher in the medium term. The recent budget announcements relating to rural, agriculture and healthcare are positive for growth in general and for the specific sectors of the economy. 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 are likely to be undertaken in the run up to the 2019 general elections, which will bode well for rural spending for the next few quarters. Debt Markets The bond markets have seen a sustained sell off over the last three months. While a tactical reversal cannot be ruled out, a sustained reversal in bond yields looks unlikely. We attribute this forecast due to the following points Investor demand continues to remain fragile CPI continues to remain above the RBI target range On the flipside, RBI intervention or a material fall in inflation coupled with revival in investor demand are the only foreseeable factors that could spur a significant rally in the bond markets at this juncture. Structural liquidity (Government Cash Balances + LAF Balances & MSS) in the system continue to positive. We expect structural liquidity to remain in surplus to neutral zone for next 6-12 months. However, bank liquidity is neutral given the government cash balances, MSS unwinding and long term repos undertaken by the RBI which offset advance tax outflows from the system. Following the benchmark, 1-3-year segment of the curve has seen a significant rise in yields and volatility. The short end of the corporate curve has seen significant market action and currently trades at spreads of over basis over the overnight repo rate, a 3 year high. Hence 1-3-year space is likely to offer superior risk adjusted returns as compared to money market and ultrashort term funds. Source: Bloomberg, Axis MF Research. 23