NFO (June 13th to June 21st)

Axis Nifty ETF (An open-ended Exchange-Traded Fund)

1

2

Introduction to Passive Investing

Passive Investing is a low friction investment strategy tracking a pre-specified

benchmark/index as closely as possible

Efficient low cost strategy Removes the risk of security selection

Relies on broader market wisdom

Participates in the constituents in the same proportion as the index

ETFs and Index Funds are popular vehicles to passive investing

3

ETFs provide the best of both worlds

Combines benefits of index based investing with stock listing

Similarity

with index

funds

Similarity with

stocks

• Low cost vehicle

• Replicates an Index

• Low expense ratio

• Open-ended structure

• Listed on an exchange

• Traded on daily basis

• Can put limit orders

• Demat holding

4

Benefits of ETFs

Exchange-traded

Investor invests at nearly the real-time prices as

opposed to end of day price

Removes bias

Best suited to earn asset class

performance-linked return

Efficient

Protects long-term investors

from the inflows and outflows of

short-term investors

Flexible

Tool for gaining instant exposure to the markets, equitizing cash,

arbitraging

Cost

Low expense

ratio

5

The ETF mechanism

Seller

NSE

Buyer Fund

Authorized

Participants /

Financial Institutions

Primary Market Secondary Market

Redemption

in kind

Buy/Sell

Cash Units of

ETF

Cash Units of

ETF Market

Making/

Arbitrage

Creation

in-kind

6

Nifty 50 Index Facts

Source of data: NSE Data as on 31st May, 2017

• The NIFTY 50 index is a well-diversified 50 companies index reflecting overall market

conditions.

• NIFTY 50 Index is computed using free float market capitalization method.

Top 10 constituents

H D F C Bank Ltd. 9.15

ITC Ltd. 7.32

HDFC Ltd. 6.89

Reliance Industries Ltd. 6.14

Infosys Ltd. 5.39

I C I C I Bank Ltd. 5.25

Larsen & Toubro Ltd. 3.99

Tata Consultancy Services Ltd. 3.74

Kotak Mahindra Bank Ltd. 3.24

Maruti Suzuki India Ltd. 2.65

1%

1%

2%

2%

4%

4%

4%

11%

11%

12%

13%

34%

0% 10% 20% 30% 40%

Services

Media & Entertainment

Telecom

Cement & Cement Products

Metals

Construction

Pharma

Consumer Goods

Automobile

IT

Energy

Financial Services

Sector Representation

7

Nifty 50 Index Performance

The above return does not factor in expenses. Returns from Axis Nifty ETF will be charged expenses.

Source of data: NSE Returns are compounded annualised. Inception Date: November 3, 1995

Performance as on 31st May, 2017. Past performance may or may not be sustained in future.

Performance 1 Year 3 Years 5 Years Since Inception

Nifty 50 Index 17.91 9.26 14.33 11.06

Nifty 50 - Last 5 years

14.3%

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Presenting Axis Nifty ETF

The investment objective of the scheme is to provide returns before expenses that closely

correspond to the total returns of the Nifty 50 Index subject to

tracking errors

Scheme Details

Exchange Traded NSE

Creation unit size 5000 units and in

multiples thereof

Pricing per unit Approx 1/10th of Nifty

50 Index Value

Key features

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Scheme Name

Axis Nifty ETF

Type

An open-ended Exchange-Traded

Fund

Benchmark

Nifty 50 Index

Fund Manager

Ashish Naik

Minimum Investment

Rs. 5,000 and in multiples of Re. 1/-

thereafter

NFO PERIOD

Subscription / Redemption of Units directly with MF

Authorised Participants & Large Investors can directly purchase/redeem in blocks from the fund in Creation Unit

Size on any business day

June 13th, 2017 to June 21st, 2017

10

Is it the right time to invest in Nifty?

11

Potential for sharp acceleration in earnings over next few years

Source of data: Motilal Oswal,

Past performance may or may not be sustained in future.

0

100

200

300

400

500

600

700

FY

01

FY

02

FY

03

FY

04

FY

05

FY

06

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

FY

17

FY

18

E

FY

19

E

FY08-17: 4% CAGR

FY17-19E: 20% CAGR

6%

20%

20%

FY01-08: 21% CAGR

12

Tailwinds for earnings growth

• Higher nominal growth should result in better operating leverage

• Lower interest rates should support demand

• Ending deflation, should boost topline growth across the board

• GST will lead to lower tax rate for organised players

• Improving global growth should boost earnings for exporters and resources

accounting for 45% of Nifty EPS

• Earnings growth is likely to be healthy; acceleration to be seen from low single

digit growth over next few years

13

Market cap to GDP ratio still below long term average

Market cap

to GDP

Subsequent 3 yr

Nifty 50 Index

Return

Dec-07 152.5% 0.0%

Dec-08 57.8% 16.1%

Dec-09 101.8% 4.3%

Dec-10 100.3% 0.9%

Dec-11 63.1% 21.4%

Dec-12 71.7% 10.4%

Dec-13 64.5% 9.1%

Dec-14 81.1% NA

Dec-15 75.5% NA

Dec-16 71.9% NA

0%

20%

40%

60%

80%

100%

120%

FY

06

FY

07

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16

India’s Marketcap to GDP (%)

Average: 80

Years with below average market

cap to GDP have been followed

by robust market performance

14

Valuations broadly reasonable

Source of data: Bloomberg, IIFL P/B – Price to Book Ratio . Past performance may or may not be sustained in future.

Nifty 50 Index Forward P/B

0

2

4

6

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Nifty Best P/B Average

7

9

11

13

15

17

19

21

23

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Apr-13

Apr-14

Apr-15

Apr-16

Apr-17

Nifty Best P/E Average

Nifty 50 Index Forward P/E

15

Investor’s key reason to invest in equities : Beat Inflation

Equities can beat inflation. However, equities come with risk

If the markets fall by Increase required to

recover

-20% 25%

-25% 33%

-50% 100%

-80% 400%

Higher the fall, larger is the increase required to recover!

Source: Axis. * Nominal Return : 10 yr average return of Debt (Crisil Composite Bond Fund Index) and

Equity (Nifty 50 Index). ^Real Return = Nominal Return – Inflation. Data period : 2002 – 2017. Inflation:

average WPI Index for last 10 years Source: Bloomberg

Past performance may or may not be sustained in future.

Asset Class Nominal

Return*

Average inflation

for last 10 years Real Return^

DEBT 6.49 5.2 1.3

EQUITY 14.24 5.2 9.0

16

Sideway markets provide an opportunity over the next few years

Range of 2 year

returns

Average subsequent

3 yr return

Average subsequent

5 yr return

<-5% 16.21% 14.65%

Between -5% to 0% 13.45% 12.03%

Between 0% to 5% 10.23% 10.19%

Between 5% to 10% 11.39% 9.91%

>10% 5.43% 6.12%

Source: MFI Explorer . Data period: Mar 1992 – Mar 2017. Above returns are for Nifty

50Index

Past performance may or may not be sustained in future.

0

2000

4000

6000

8000

10000

Jul-12 Jul-13 Jul-14 Jul-15 Jul-16

Nifty 50 Index

Equity markets have been range

bound in the last 2 years

Last 2 yr return of

Nifty 50 Index was

3.9%

17

Earnings tend to be cyclically linked to economy

Source of data: NSE. Past performance may or may not be sustained in future.

Nifty Earnings Trend (Jan 1999 – December 2016)

1999-2002

Earnings Growth

-1% pa

(-3.8% absolute)

Nifty Returns

5.4% pa

(23.5% absolute)

2003-2007

Earnings Growth

+24.7% pa

(+201.5% absolute)

Nifty Returns

41.0% pa

(458.5% absolute)

2008-2016

Earnings Growth

+6.7% pa

(+78.7% absolute)

Nifty Returns

3.2% pa

(33.2% absolute)

18

Market downturns are often followed by improved returns

Source of data: Bloomberg. Nifty 50 Index calendar year returns. Data as on 31st Dec 2016

Past performance may or may not be sustained in future.

2016

2013

2010

2004 2014

2015 2002 2012 2009

2011 2001 1997 2005 2003

2008 2000 1996 1993 2006 1999

1995 1998 1994 1992 2007 1991

-20 and less -20 to 0 0 to 20 20 to 40 40 to 60 60+

Less than -20% annual returns

Years following the worst

Nifty 50 Index calendar year returns

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Riskometer, Statutory Details and Risk Factors

Disclaimer: Past performance may or may not be sustained in the future.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd.

(liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the

AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision.

Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates

shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No

representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The

AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

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

Data updated as on 31st May, 2017 unless specified differently

This product is suitable for investors who are

seeking*:

• Capital appreciation while generating income

over medium to long term

Investment in Equity and Equity related

instruments covered by Nifty 50 Index*

*Investors should consult their financial advisers if in

doubt about whether the product is suitable for them.