EQUITY

M AY 2 0 2 1

13.2% 48.4%

-0.4%

Nifty 50 - Last 5 years Nifty 50 - Last 1 year Nifty 50 - MTD (CAGR) (Absolute) (Absolute)

QUICK TAKE Equity market valuations are broadly reasonable We remain bullish on equities Investors are suggested to have their adjusted for the cyclical low in earnings and from a medium to long term asset allocation plan based on one’s risk potential for revival going forward. perspective. appetite and future goals in life.

KEY HIGHLIGHTS

MARKETS Equity markets saw yet another volatile month driven by news Markets have entered a period of consolidation over the past few flow and policy action. The broader markets continued to weeks as they digest earnings and news flow. While the global outperform frontline stocks driven by high quality mid and small picture is positive, in the key aspect to monitor is the peak of caps finding favour with investors. Frontline benchmarks, S&P the second wave and the progress of the vaccination drive. From a BSE Sensex & NIFTY 50 ended the month down 1.5% & 0.4% valuations standpoint, the beta normalization is likely to give way respectively. NIFTY Midcap 100 registered a gain of 2.1% while to fundamentals based long term growth. To that effect earnings NIFTY Smallcap 100 rose 5.6%. After a strong start to the year, so far have brought valuations to long term averages. India has lagged its global peers over the last few months Our portfolio companies today encompass a cross section of understandably so on account of the Covid news irking foreign growth ideas ideally suited to benefit from gaps left by weaker investors. MSCI India underperformed MSCI EM by 3.4%. CORPORATE incumbents and capture growth opportunities. In line with the The prime focus over the last month has been the rapid recovery theme as the economy returns to a mid-to-high growth resurgence of Covid across the country. Stark pictures and news environment, several domestic cyclicals are likely to be flow has dampened the mood across all walks of life including beneficiaries of the new growth cycle. The core portion of our financial markets. Many states have put in place lockdowns across portfolio consists of companies that emphasise quality which we affected areas and governments have had to contend with hard continue to hold on to. The hallmark of our investment philosophy questions on the Covid game plan. While the vaccination program is the endeavour to identify consistent long term growth and our has been opened to the 18-44 age group, we believe supply of portfolios are positioned accordingly. vaccines will remain a key bottleneck. As always, investors must use market dips to aggressively GLOBAL Earnings over the last quarter have confirmed a strong participate in the India growth story. The longer term outlook for resurgence in economic activity in the last quarter. Cyclical stories equities continues to remain intact. Short term volatility can be across banks, materials and auto have been strong. Sectors like IT used by investors to top up their existing investments with a 3 to and the healthcare space have also witnessed growth on expected 5-year view lines. Management commentary has been key. With a return of state wise lockdowns, we expect the June quarter earnings to be lacklustre. Top 10 Stocks (By Holding) % AXIS BLUECHIP FUND (as on 30th April 2021)

• The fund focuses on delivering superior risk adjusted returns. The fund manager Limited 9.4 targets out-performance to the benchmark while delivering risk that is lower than the benchmark. • Stocks are selected in the portfolio based on their ability to grow earnings on a Limited 9.0 sustainable basis from a medium term perspective while maintaining a highly liquid and risk managed portfolio. The expected earnings growth of the portfolio is higher than that of the benchmark NIFTY 50 TRI. HDFC Bank Limited 9.0 • The strategy is to invest mainly in companies which operate in a secular growth segment and has leading market share in their areas of operation to provide steady returns and the remaining in companies that are gaining markets share due to Tata Consultancy Services Limited 7.3 differentiated offering or cost advantage, in large sectors expected to deliver alpha. • The portfolio retains a distinct large cap bias with current mid-cap exposure limited to around 20%. For its midcap allocations, the portfolio looks to keep a high hurdle in Limited 7.1 terms of quality and growth potential.

ICICI Bank Limited 7.1 Top 5 Sectors (as on 30th April 2021)

39.9% Avenue Supermarts Limited 5.6 18.2% 16.1% 6.7% Housing Development Finance 5.0 4.9% Corporation Limited

Reliance Industries Limited 4.4 Finance Information Consumer Healthcare Oil & Gas Technology Divi's Laboratories Limited 3.2 Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets.

AXIS LONG TERM EQUITY FUND Top 10 Stocks (By Holding) % (An open-ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit) (as on 30th April 2021)

• The fund is focused on quality companies having strong long term earnings growth Bajaj Finance Limited 9.6 prospects. Thus the fund maintains a stable core portfolio with relatively low churn. Within that objective, the fund is comfortable looking past shorter term volatility in performance. Tata Consultancy Services Limited 7.5 • With a medium to long term view towards capturing growth, the fund is biased towards stocks which can deliver superior returns. This includes private sector banks Info Edge (India) Limited 7.0 and NBFCs, autos and ancillary, housing & consumption sectors. • Normally, the fund has avoided highly cyclical stories and highly regulated sectors. The fund looks at opportunities across the market cap and the portfolio remains Avenue Supermarts Limited 6.9 balanced between its large and mid-cap allocations. Kotak Mahindra Bank Limited 6.8

HDFC Bank Limited 5.8 Top 5 Sectors (as on 30th April 2021)

36.0% Housing Development Finance 5.2 19.0% Corporation Limited 18.5% 9.0% 6.6% Nestle India Limited 5.0

Divi's Laboratories Limited 5.0 Finance Information Consumer Autos & Healthcare Technology Logistics Limited 4.2 Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Top 10 Stocks (By Holding) % AXIS MIDCAP FUND (as on 30th April 2021)

• The fund focuses on investing in bottom-up stocks that provide potential to grow Cholamandalam Investment and 5.7 cash flows over the medium term. The portfolio seeks to add businesses with Finance Company Limited economic moats and distinct competitive advantage.

• The fund remains true-to-label in its portfolio allocations with a diversified and risk- Limited 3.7 managed mid-cap portfolio which has a superior liquidity profile.

PI Industries Limited 3.6

Bajaj Finance Limited 3.5

Astral Poly Technik Limited 3.4

Top 5 Sectors (as on 30th April 2021) ICICI Bank Limited 3.3

22.4% 14.6% 13.9% HDFC Bank Limited 2.9 13.4% 8.3% Supreme Industries Limited 2.8

Avenue Supermarts Limited 2.8 Finance Consumer Information Capital Goods, Agro Inputs Technology Eng. & & Chemical Construction Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Limited 2.7 fund manager’s view of the equity markets.

Top 10 Stocks (By Holding) % AXIS FOCUSED 25 FUND (as on 30th April 2021)

• The fund manager runs a high conviction portfolio, containing the fund manager’s Bajaj Finance Limited 9.4 best ideas and invests in up to 25 stocks while ensuring reasonable diversification and focus on quality and risk management. Kotak Mahindra Bank Limited 8.8 • The fund manager looks at 3 broad buckets while constructing the portfolio. The core portfolio consists of steady compounders that can generate reasonable returns with Tata Consultancy Services Limited 8.4 low volatility. The alpha and emerging themes buckets consist of companies having a cyclical tailwind and emerging themes with high growth potential. We have rejigged our portfolio over the last few months as we look forward to the new cycle. The Avenue Supermarts Limited 6.9 emphasis is on quality and growth with a 3-5-year view.

Info Edge (India) Limited 6.4

Housing Development Finance 6.3 Top 5 Sectors (as on 30th April 2021) Corporation Limited 34.9% 20.9% 12.0% HDFC Bank Limited 5.8 8.1% 7.9% Divi's Laboratories Limited 5.6

Finance Information Consumer Capital Goods, Autos & Pidilite Industries Limited 5.2 Technology Eng. & Logistics Construction

Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Supreme Industries Limited 5.1 fund manager’s view of the equity markets. Top 10 Stocks (By Holding) % AXIS FLEXI CAP FUND (as on 30th April 2021)

• Good ideas can do better irrespective of its sector/theme/size. Bajaj Finance Limited 9.1 • Axis Multicap Fund seeks to invest across the market cap spectrum in high conviction ideas with improved risk- adjusted return characteristics. The fund manager looks for stocks that are expected to report faster growth relative to the benchmark. Infosys Limited 8.1 • The fund as such is sector agnostic and focuses on a bottom up approach to invest in stocks that are at an inflection point such as market share gain, industry HDFC Bank Limited 7.5 consolidation, sunrise industries, improved management focus and capital allocation or regulatory & policy changes. Kotak Mahindra Bank Limited 6.6

Tata Consultancy Services Limited 6.5

ICICI Bank Limited 5.8 Top 5 Sectors (as on 30th April 2021)

36.9% Avenue Supermarts Limited 5.7 18.8% 17.2% 6.9% 5.6% Limited 3.8

Housing Development Finance 3.4 Corporation Limited Finance Information Consumer Healthcare Autos & Techanology Logistics

Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Limited 3.2 fund manager’s view of the equity markets.

Top 10 Stocks (By Holding) % AXIS SMALL CAP FUND (as on 30th April 2021)

• Axis Smallcap fund aims to invest primarily in high conviction small cap stocks. The Galaxy Surfactants Limited 6.5 bottom up approach to investing seeks to identify long term businesses keeping in mind risk and reward by containing mistakes and navigating volatile stock movements. Tata Elxsi Limited 6.0

• Investing in small caps is not for the faint hearted. Key to successful investing is Fine Organic Industries Limited 4.3 patience and ability to withstand short term volatility. Furthermore, small caps are a broader universe as compared to large & midcaps and hence the need for active management keeping in mind the opportunities in this space come with higher Brigade Enterprises Limited 3.3 degree of risk as compared to their larger counterparts.

JK Lakshmi Cement Limited 3.3

Can Fin Homes Limited 3.1 Top 5 Sectors (as on 30th April 2021)

18.5% Aarti Industries Limited 2.8 15.6% 15.4% 14.5% 12.9% Narayana Hrudayalaya Limited 2.7

JK Cement Limited 2.7 Capital Goods, Consumer Agro Inputs Information Finance Eng. & & Chemical Technology Construction Orient Refractories Limited 2.6 Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Top 10 Stocks (By Holding) % AXIS GROWTH OPPORTUNITIES FUND (as on 30th April 2021)

• Diversification is key to long term portfolio management. Indian equities currently Tata Elxsi Limited 8.4 account for just 3% of the total global market cap of the world. Axis Growth Opportunities Fund offers investors a unique opportunity to take exposure of global equities through a structured allocation by way of an open ended mutual fund. Sundaram Finance Limited 7.6 • The fund aims to invest 70% in domestic equities through a bottom up approach while the rest will be invested in global large caps. Overall the fund will maintain a compact portfolio of high conviction domestic and international companies hence Bajaj Finance Limited 7.3 offering investors a tax efficient yet unique investment proposition for portfolio diversification. PI Industries Limited 5.8

Info Edge (India) Limited 5.7

Torrent Power Limited 5.3 Top 5 Sectors (as on 30th April 2021)

27.9% Astral Poly Technik Limited 4.1 25.0% 11.7% 8.0% Supreme Industries Limited 2.9 7.4%

Coforge Limited 2.6

Information Finance Consumer Capital Goods, Agro Inputs Techanology Eng. & & Chemical Motherson Sumi Systems Limited 2.2 Construction Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets.

Top 10 Stocks (By Holding) % AXIS ESG EQUITY FUND (as on 30th April 2021)

• Environmental, social change and regulatory response to them are happening faster Avenue Supermarts Limited 7.7 than ever and poses sizeable challenges for businesses. However, many businesses remain focused on hard financial cost/benefit analysis while ignoring intangible costs like their carbon footprint or waste emissions. Bajaj Finance Limited 7.7

• The fund aims to invest 70% in domestic equities through a bottom up approach with Tata Consultancy Services Limited 7.2 an emphasis on ESG compliance while the rest will be invested in global ESG compliant largecaps. Overall the fund will maintain a compact portfolio of high conviction domestic and international companies hence offering investors a tax Kotak Mahindra Bank Limited 7.0 efficient yet unique investment proposition for portfolio diversification. HDFC Bank Limited 6.9

Nestle India Limited 6.7

Top 5 Sectors (as on 30th April 2021) Info Edge (India) Limited 6.3 36.1% 26.7% 22.1% Limited 6.3 4.1% 3.7% Housing Development Finance 6.2 Corporation Limited

Finance Information Consumer Capital Goods, Healthcare Techanology Eng. & Limited 3.1 Construction Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. AT A GLANCE

(Data as on 30th April 2021)

Axis Bluechip Axis Focused 25 Axis Long Term Axis Flexi Cap Axis Midcap Fund Axis Small Cap Axis Growth Axis ESG Equity Scheme Fund Fund Equity Fund* Fund Fund Opportunities Fund Names Fund

Category Large Cap Fund Focused Fund ELSS Flexi Cap Fund Mid Cap Fund Small Cap Fund Large & Mid Cap Thematic Fund Fund Strategy Focused on high High conviction Investing in Investing in Invest in high Invest in high Multicap portfolio Investing in quality best ideas companies with breadth of quality mid caps quality small caps with upto 35% in companies with established portfolio across secular long term opportunities with long term with long term global large cap sustainable businesses and core, cyclical and growth outlook available across horizon horizon stocks growth prospects industry leaders emerging themes and superior the market cap using an ESG governmance spectrum matrix practices

Inception Date 5-Jan-10 29-Jun-12 29-Dec-09 20-Nov-17 18-Feb-11 29-Nov-13 22-Oct-18 12-Feb-20

S&P BSE Mid Nifty Smallcap NIFTY Large Benchmark Nifty 50 TRI Nifty 50 TRI S&P BSE 200 TRI Nifty 500 TRI Nifty 100 TRI Cap TRI 100 TRI Midcap 250 TRI

AUM (Crs.) 25,183.24 15,520.92 28,238.59 7,737.66 10,898.59 4,853.73 2,899.03 1,927.34

Top Ten Holdings (%) 66.3% 69.6% 61.9% 59.4% 34.1% 37.5% 48.5% 65.3%

Allocation

Large Cap 97.7% 91.7% 85.1% 91.0% 26.3% - 54.0% 93.1%

Mid Cap 0.8% 7.1% 11.7% 5.4% 65.4% 21.0% 32.4% 3.6%

Small Cap - - 3.0% 2.5% 3.6% 69.6% 13.3% 1.3%

Debt, Cash & Cash Equivalents 1.6% 1.2% 0.3% 1.2% 4.7% 9.4% 0.3% 2.0% Top 5 Sectors Finance: Finance: Finance: Finance: Finance : Capital Goods, Information Finance: 39.9% 34.9% 36% 36.9% 22.4% Engineering & Technology: 36.1% Construction: 27.9% 18.5% Information Information Information Information Consumer: Consumer: Finance: Information Technology: Technology: Technology: Technology: 14.6% 15.6% 25% Technology: 18.2% 20.9% 19% 18.8% 26.7%

Consumer: Consumer: Consumer: Consumer: Information Agro Inputs Consumer: Consumer: 16.1% 12% 18.5% 17.2% Technology: & Chemical: 11.7% 22.1% 13.9% 15.4%

Healthcare: Capital Goods, Autos & Logistics: Healthcare: Capital Goods, Information Capital Goods, Capital Goods, 6.7% Engineering & 9% 6.9% Engineering & Technology: Engineering Engineering & Construction: Construction: 14.5% & Construction: Construction: 8.1% 13.4% 8% 4.1% Oil & Gas: Autos & Logistics: Healthcare: Autos & Agro Inputs & Finance: Agro Inputs & Healthcare: 4.9% 7.9% 6.6% Logistics: Chemical: 12.9% Chemical: 3.7% 5.6% 8.3% 7.4%

Exit Load If redeemed / switched-out within 12 If redeemed / switched-out within 12 months from the date of allotment: months from the date of allotment: • For 10% of investments: NIL • For 10% of investments: NIL • For remaining investments: 1% • For remaining investments: 1% NIL • If redeemed / switched-out after 12 months from the date of allotment: NIL • If redeemed / switched-out after 12 months from the date of allotment: NIL

Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. 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. *An open-ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. Please refer SID for exact asset allocation. AXIS BLUECHIP FUND AXIS LONG TERM EQUITY FUND (An open-ended equity scheme predominantly Moderately (An open-ended equity linked saving scheme with Moderately Moderate Moderate investing in large cap stocks) High a statutory lock in of 3 years and tax benefit) High Low to This product is suitable for investors who are Low to This product is suitable for investors who are Moderate High Moderate High seeking*: seeking*: • Capital appreciation over long term. • Capital appreciation & generating income • Investment in a diversified portfolio Low Very High over long term. Low Very High predominantly consisting of equity and • Investment in a diversified portfolio equity related instruments of large cap RISKOMETER predominantly consisting of equity and RISKOMETER companies. equity related instruments. Investors understand that their principal *Investors should consult their financial advisers if in Investors understand that their principal *Investors should consult their financial advisers if in will be at very high risk will be at very high risk doubt about whether the product is suitable for them. doubt about whether the product is suitable for them.

AXIS MIDCAP FUND AXIS FOCUSED 25 FUND (An open-ended equity scheme predominantly Moderately (An open-ended equity scheme investing in Moderately Moderate Moderate investing in mid cap stocks) High maximum 25 stocks investing in large cap, mid High Low to cap and small cap companies) Low to This product is suitable for investors who are Moderate High Moderate High seeking*: This product is suitable for investors who are • Capital appreciation over long term. seeking*: • Investing predominantly in equity & equity Low Very High • Capital appreciation over long term. Low Very High related instruments of mid cap companies. • Investment in a concentrated portfolio of *Investors should consult their financial advisers if in RISKOMETER equity & equity related instruments of up to RISKOMETER doubt about whether the product is suitable for them. 25 companies. Investors understand that their principal Investors understand that their principal will be at very high risk *Investors should consult their financial advisers if in will be at very high risk doubt about whether the product is suitable for them.

AXIS FLEXI CAP FUND AXIS GROWTH (An open ended dynamic equity scheme investing Moderately Moderately Moderate OPPORTUNITIES FUND (An Open- Moderate across large cap, mid cap, small cap stocks) High ended Equity Scheme investing in both large cap High Low to Low to This product is suitable for investors who are Moderate High and mid cap stocks) Moderate High seeking*: This product is suitable for investors who are • Capital appreciation over medium to long seeking*: term. Low Very High • Capital appreciation over long term. Low Very High • Investment in a dynamic mix of equity and • Investment in a diversified portfolio equity related instruments across market RISKOMETER predominantly consisting of equity and RISKOMETER capitalization. equity related instruments both in India as Investors understand that their principal well as overseas. Investors understand that their principal *Investors should consult their financial advisers if in will be at very high risk will be at very high risk doubt about whether the product is suitable for them. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. AXIS SMALL CAP FUND AXIS ESG EQUITY FUND (An open ended equity scheme predominantly (An Open ended equity scheme investing in Moderately Moderately investing in small cap stocks) Moderate companies demonstrating sustainable Moderate High High practices across Environment, Social and This product is suitable for investors who are Low to Low to seeking*: Moderate High Governance (ESG) theme) Moderate High • Capital appreciation over long term. This product is suitable for investors who are seeking*: • Investment in a diversified portfolio Low Very High Low Very High predominantly consisting of equity and • Capital appreciation over long term.

equity related instruments of small cap RISKOMETER • Investments in companies demonstrating RISKOMETER companies. sustainable practices across Environment, *Investors should consult their financial advisers if in Investors understand that their principal Social and Governance (ESG) parameters. Investors understand that their principal doubt about whether the product is suitable for them. will be at very high risk *Investors should consult their financial advisers if in will be at very high risk doubt about whether the product is suitable for them.

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Data as on 30th April 2021. Source of data: Bloomberg, ACEMF Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). This document should not be construed as research report. Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Ltd. (liability restricted to ` 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. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.