Axis Consumption ETF (An Open Ended Exchange Traded Fund tracking NIFTY India Consumption Index)

Invest in the brightest Consumer names at your pace

NFO Opens NFO Closes 30th August 2021 13th Sep 2021 Product Labelling

Axis Consumption ETF (An Open Ended Exchange Traded Fund tracking NIFTY India Consumption Index) This product is suitable for investors who are seeking*: • Long term wealth creation solution • The fund that seeks to track returns by investing in a basket of NIFTY India Consumption Index stocks and aims to achieve returns of the stated index, subject to tracking error *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

The product labelling assigned during the New Fund Offer is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made 2 The India Consumption Theme Key Components

Consumer Goods

Automobile Consumer Services

Telecom

Healthcare Services

Media & Entertainment

Textiles

Services

Source: Axis MF Research. Sector(s) mentioned above are for the purpose of illustration and should not be construed as recommendation. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 3 Investing the Way You Consume Invest in them through Axis Consumption ETF

ITC, Marico, The food you Consume Dabur, Nestle

Your Evening Zee Entertainment Entertainment

Page Industries, Your Attire Trent

Voltas, The Electronics & Machines That Make Your life easier Crompton Greaves Maruti Suzuki, Your Commute Bajaj Auto, Interglobe Aviation

HUL, Taking Care of Your Health & Well Being Apollo Hospitals Bharti Airtel The Way you Communicate

Source: Axis MF Research. Sector(s) mentioned above are for the purpose of illustration and should not be construed as recommendation. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 4 Consumption In India Large macro opportunity

India’s large and growing population is the mainstay of its consumer growth story

2,000 India population (millions of persons) • Hospitals 1,455.8 1,500

1,000

500 • Diagnostics 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026

• Drug Manufacturers More importantly, India is a young country and is expected to have the largest millennial population for the next two decades…

Median Age (in yrs)

41.8 38.4 38.5 35.6 40.3 40.6 28.7 • Clinical Research & R&D

India China USA Singapore Russia Canada UK

Source: MOSL, Axis MF Research. Sector(s) mentioned above are for the purpose of illustration and should not be construed as recommendation. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 5 Consumption In India A Growing Middle Class

The average disposable income in India continue to rise Nominal Personal Disposable Income (INR t)

• Hospitals 150.1 160.2 132.9 119.7 98.4 107.8 79.8 90.1 60.0 70.3

• Diagnostics FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Millennials Millennials are (adjusted to expected to include current account for millennials) are the bulk of expected to India’s account for more working age than one population third of India’s total population Source: UN, Morgan Stanley Research E=UN estimates

Source: MOSL, Axis MF Research. UNDP Estimates 6 Consumption Trends Aspirational Appetite - Key to Driving Demand

Utilities & Rent/EMI, Essentials, 7% 14% Monthly Utilities & Essentials, Essentials, Entertainmen 28% 4% t, 28% Rent/EMI, 7%

The Effect of Discretionary Discretionary Rising Incomes & Lifestyle, & Lifestyle, 29% 10%

Savings, Savings, 12% 11%

Education, 17% Personal Grooming, 12% Apparel, Accessories & Personal Grooming, 21%

As Incomes rise, millennials prefer to spend on discretionary items like travel, apparel, entertainment & even real estate

Source: Morgan Stanley, Axis MF Research. 7 Introducing Axis Consumption ETF

8 Axis Consumption ETF Take exposure to the consumption theme in a neatly packed bite sized exchange traded fund

Godrej Consumer Crompton Greaves ITC Mahindra & Mahindra Tata Consumer Products Products Consumer Electricals 210 786 772 985 464

Hindustan Unilever Titan Company Britannia Industries Hero Motocorp Marico 2,382 1,799 3,637 2,797 521

Bharti Airtel Nestle India Info Edge (India) Dabur India Voltas 622 18,273 5,463 580 998 Axis Consumption ETF Asian Paints Avenue Supermarts Apollo Hospitals Enterprise Havells India Page Industries 2,977 3,552 4,063 1,224 32,142 65.13*

Maruti Suzuki India Bajaj Auto Eicher Motors Jubilant Foodworks Zee Entertainment 7,002 3,798 2,734 3,752 183

Interglobe Aviation Berger Paints India Trent Colgate Palmolive (India) United Spirits 1,639 811 946 654 637

Source; NSE, Axis MF Research Stock prices taken as of close on 12th August 2021. *Axis Consumption ETF unit value will correspond to roughly 1/100th value of NIFTY India Consumption Index. Value of NIFTY India Consumption Index as on close of August 10th 2021 was Rs 6,513. Price of Axis Consumption ETF mentioned above is for illustrative purposes only. Allotment price and subsequent price upon listing may vary from illustrative price. Prices rounded off to nearest whole number. 9 About NIFTY India Consumption Index

Parameters Index Strong demographic dividend and a growing middle class bode well for the India Consumption Story Index Inception Date 12-Jul-11 Base Date 2-Jan-06 Dividend Yield 1.41% Number of Stocks 30 The index is a diversified portfolio of companies across sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & entertainment, etc. Top Stock Weight (%) 9.97% Top 3 Stocks Weight (%) 28.05% Top 5 Stocks Weight (%) 42.54%

NIFTY India Consumption Index comprises of the 30 largest Correlation (NIFTY 50) 0.90 consumption oriented companies by free float market capitalization. Beta (Nifty 50) 0.80

st Source: NSE Indices. MOSL, Axis MF Research, Data as of 31 July 2021 10 Performance NIFTY India Consumption Index has been a Long Term Wealth Creator

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 Jan-06 Jun-07 Nov-08 Apr-10 Sep-11 Feb-13 Jul-14 Dec-15 May-17 Oct-18 Mar-20 Aug-21 NIFTY India Consumption Index NIFTY 50

Past performance may or may not be sustained in the future. Values normalized to 1000 as on January 2nd 2006. Data as of 23rd August 2021. 11 Axis Consumption ETF An Open Ended Exchange Traded Fund tracking NIFTY India Consumption Index

Scheme Name Creation Unit Benchmark Fund Manager Axis 50,000 Units and Nifty India Deepak Agrawal, Consumption in multiples Consumption TRI Viresh Joshi ETF thereof Index Minimum Unit Value Investment (NFO) Unit Creation Rs. 5,000 and in 1/100 of the value In Demat mode of NIFTY India multiples of only* Rs. 1/- thereafter Consumption Index

*Units of the Scheme will be available in Dematerialized (electronic) form only. The applicant under the Scheme will be required to have a beneficiary account with a of NSDL/CDSL and will be required to indicate it in the application form. 12 Passive Investing With Axis MF

1413 Introduction to Passive Investing

Passive Investing is a low friction investment strategy tracking a specific index as closely as possible

Participates in the constituents in the same proportion as the index

Removes the risk of security selection

ETFs and Index Funds are popular vehicles to passive investing

Relies on broader market wisdom

Efficient low cost strategy

14 What is an ETF? The Basics

An ETF is a ETFs achieve ETFs trade in Trade an entire mutual fund this by closely bite sized units basket of designed to track replicating the on an exchange securities with a portfolio of the at market the performance small ticket size of an index underlying determined index prices

Key Differences ETFs Active Mutual Funds

Portfolio aimed to beat What’s on Offer? Track an Index broad market indices

Trading Frequency Actively traded on an exchange Trade once a day on NAV Prices

Style of Management Passive Active

Costs Less Expensive More Expensive

*Actively managed equity funds do not include index funds Like Actively managed equity funds, ETFs carry price risks. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest. 15 ETF Investing The best of both worlds

Combines benefits of index based investing with stock listing

Listed on an Low cost vehicle exchange

Traded on all Replicates an Index business days

Low expense ratio Can put limit orders Similarity with with stocks Similarity Demat holding

Similarity with funds with index Similarity Open-ended structure

16 Benefits of ETFs

Exchange-traded Investor invests at nearly Removes bias the real-time prices as opposed to end of day price Best suited to earn asset class performance-linked return Cost Low expense ratio

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

17 The ETF Mechanism

Primary Market Secondary Market

Seller

Units of ETF Cash

Market Making Authorized Participants/ Stock Exchange Large Investors Buy/Sell

Redemption Creation Cash Units of ETF in kind in-kind

Fund Buyer

The process outlined will be in effect once the fund reopens post the NFO launch. During the NFO investors may subscribe through all physical channels and through distribution agents of Axis Mutual Fund and at ISCs. 18 Axis MF Product Basket Growing Range of Index Based Solutions

Broad Market Solutions

Axis NIFTY ETF Axis NIFTY 100 Fund

Gold Solutions

Axis Gold ETF Axis Gold Fund

Sector Solutions

Axis Banking ETF Axis Technology ETF

Axis Healthcare ETF Axis Consumption ETF

Debt Solutions

AXIS AAA Bond Plus SDL ETF - 2026 Maturity ​

Note: Investors will be bearing the recurring expenses of the scheme, in addition to the expenses of the schemes, in which schemes make investments. 19 Product Labelling

Fund Name Riskometer Product Labelling

This product is suitable for investors who are seeking* Axis Gold ETF  Capital appreciation over medium to long term (An open ended scheme replicating/tracking Domestic Price of  Investment predominantly in gold in order to generate returns similar to the performance of Gold) gold, subject to tracking error

This product is suitable for investors who are seeking* Axis Gold Fund  Capital appreciation over medium to long term (An open ended fund of fund scheme investing in Axis Gold  Investment predominantly in Axis Gold ETF in order to generate returns similar to the ETF) underlying fund, subject to tracking error

This product is suitable for investors who are seeking* Axis Nifty ETF  Capital appreciation over medium to long term (An open ended Scheme replicating/ tracking Nifty 50 Index)  Investments in Equity & Equity related instruments covered by Nifty 50 Index

This product is suitable for investors who are seeking* Axis NIFTY 100  Long term wealth creation solution (An Open Ended Index Fund tracking the NIFTY 100 Index)  An index fund that seeks to track returns by investing in a basket of Nifty 100 Index stocks and aims to achieve returns of the stated index, subject to tracking error.

This product is suitable for investors who are seeking* Axis Banking ETF  Long term wealth creation solution (An Open Ended scheme replicating / tracking NIFTY Bank  An index fund that seeks to track returns by investing in a basket of NIFTY Bank Index Index) stocks and aims to achieve returns of the stated index, subject to tracking error

This product is suitable for investors who are seeking* Axis Technology ETF  Long term wealth creation solution An Open Ended Exchange Traded Fund tracking NIFTY IT  An index fund that seeks to track returns by investing in a basket of NIFTY IT Index stocks Index and aims to achieve returns of the stated index, subject to tracking error

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

20 Product Labelling

Fund Name Riskometer Product Labelling

Axis AAA Bond Plus SDL ETF - 2026 Maturity This product is suitable for investors who are seeking*: (An open-ended Target Maturity Exchange Traded Fund  Income over long term investing predominantly in constituents of Nifty AAA Bond Plus  Investment in AAA rated Corporate Bonds & State Development Loans (SDLs) as SDL Apr 2026 50:50 Index) represented by Nifty AAA Bond Plus SDL Apr 2026 50:50 Index, subject to tracking errors.

This product is suitable for investors who are seeking* Axis Healthcare ETF  Long term wealth creation solution An Open Ended Exchange Traded Fund tracking NIFTY  The fund that seeks to track returns by investing in a basket of NIFTY Healthcare Index Healthcare Index stocks and aims to achieve returns of the stated index, subject to tracking error

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

21 Statutory Details and Risk Factors

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

Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

Axis Consumption ETF offered by Axis Mutual Fund is not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)). NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of Axis Consumption ETF or any member of the public regarding the advisability of investing in securities generally or in the Axis Consumption ETF linked to the NIFTY India Consumption Index or particularly in the ability of the NIFTY India Consumption Index to track general stock market performance in India. Please read the full Disclaimers in relation to the NIFTY India Consumption Index in the in the Offer Document / Prospectus / Information Statement.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by (liability restricted to Rs 1 Lakh).

Trustee: Axis Mutual Fund Trustee

Investment Manager: Axis Asset Management Co.(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.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.

22 Thank You