macro economic indicators are showing signs of stability dynamic... · portfolio characteristics...

Macro economic indicators are showing signs of stability

2

* Data available as on 31st Dec 2018. Source: Bloomberg

Indicator Current* Outlook

Inflation (CPI) 2.3% RBI’s focus on inflation is likely to

keep rates stable over the year Interest Rate (Repo Rate) 6.5%

Real Rate 4.2% Positive real rates

Crude (Brent $/bbl) 54.2 Falling crude has made the terms of

trade once again back in India's favor.

GDP (Annual Growth Rate) 7.1% Strong growth

Forex Reserves USD 393 bn

India’s strong external position BoP USD -1.9bn

CAD (as a % of GDP) -2.9%

RBI is targeting for neutral liquidity

3

Source: Morgan Stanley. Data as on 31st Dec 2018.

OMOs and term repos helping offset the liquidity shortfall & controlling bond yields

Trailing Interbank Liquidity : expected to be in neutral zone RBI scaled up OMO purchases to neutralize liquidity deficit

-60

-40

-20

0

20

40

60

80

100

De

c-1

5

Ju

n-1

6

De

c-1

6

Ju

n-1

7

De

c-1

7

Ju

n-1

8

De

c-1

8

Net Absorption(+)/Infusion(-) ofLiquidity, US$ bn

-300

-200

-100

0

100

200

300

400

500

600

Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19

RBI increased OMO purchases to

INR 500 Bn in Dec-18; announced

purchases of INR 500 Bn for Jan-19

OMO, INR bn

We expect a stable rate scenario over the next few months

4

Source: Morgan Stanley. Data as on 31st Dec 2018.

Eased inflation Operating rate close to Repo

4.5

5.0

5.5

6.0

6.5

7.0

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

Repo CCIL-CBLO Overnight Rate

2.33

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Dec-16 Jun-17 Dec-17 Jun-18

CPI - Combined Tri Party Repo

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0


Repo

3 year AAA PSU

3 year G-Sec Yield

5.50

6.00

6.50

7.00

7.50

8.00

8.50


10 year G-Sec yield (%)

We prefer short end over longer end of the curve

5

Source: Bloomberg, Data as on 31st Dec 2018.

Short end offers attractive spread over G-Sec & Repo Long end of to be range bound : Do not expect structural rally

Expect only tactical

opportunities going

forward

137 bps over

GSec

191 bps

over

Repo

Recent rally of >80bps

Key risks to watch

6

Source: Bloomberg, Trading economics, India Ratings, Morgan Stanley, Axis MF Research, CLSA. Data available as on 31st Dec 2018.

Global growth, Crude , Food inflation and Fiscal are the key risks to watch for

Brent Crude Price ($/barrel) : Increased volatility Fiscal Deficit: GST trends weak; can lead to higher than expected fiscal gap

FY19 GDP Growth Revised Down to 7.2% due to Inflationary Headwinds Food Inflation

Impact of every $10 oil price

increase

CA Balance %

of GDP -0.3%

Inflation (CPI) 0.4%

Fiscal balance 0.05% of GDP. 55

65

75

85

95

Nov-17 May-18 Nov-18

Brent crude price ($/barrel)

6.5

7

7.5

8

FY16 FY17 FY18 FY19F

Revised

Real GDP

4.7

3.26 2.81 2.8 3.1 2.91

1.37

0.29 0.51

-0.86

-2.61

Jan-18 Apr-18 Jul-18 Oct-18

Food disinflation has led headline

CPI to be significantly lower than

RBI's target

Axis Dynamic Bond Fund

7

Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. ^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. #High Rated Papers refers to instruments which are rated AAA/A1+ & equivalent or G-sec. Data as on 31st Dec 2018.

Invests in

best ideas Dynamically

allocates across all segments

Active duration management

Portfolio Characteristics (as on 31st Dec, 2018)

Average Maturity 4.7 years

Modified Duration 3.3 years

Yield to Maturity^ 8.65%

Average for the last 1 year

Allocation to High Rated

Papers# 75%

Allocation to G-Sec 36%

Axis Mutual Fund

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec-15 Dec-16 Dec-17 Dec-18

Asset Allocation Mix and Average Maturity

Dynamically managed maturity profile

8

Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. Source of data: ACEMF. The fund above is Axis Dynamic Bond Fund.

Data as on 31st Dec 2018.

Corporate Bonds

G-Sec

Money Market Instruments PTC

Axis Mutual Fund

Performance as on Dec 31, 2018

9 Axis Mutual Fund

Annexure

10

Annexure for returns of schemes managed by fund manager

Axis Mutual Fund

Refer slide 14 for disclaimer.

Annexure

11

Annexure for returns of schemes managed by fund manager

Axis Mutual Fund


Annexure

12 Axis Mutual Fund


Annexure

13 Axis Mutual Fund


Annexure

14

Performance Disclaimers

#Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of the scheme.

@@The performance data for 5 years period has not been provided for scheme/plan not in existence for 5 years. @The performance data for 3

years period has not been provided for scheme/plan not in existence for 3 years.

Data as on Dec 31, 2018.

Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Since inception returns are calculated

on Rs. 2026.8384/- for Gold ETF & Rs. 10/- for all other schemes. Different plans have different expense structure. Plan of the scheme for which

performance is given is indicated above.

The above data excludes performance of Fixed Maturity Plans and all the schemes which have not completed a year. Top 3 and Bottom 3 schemes

(based on 1 year performance) managed by Devang Shah has been provided herein.

Devang Shah is managing Axis Liquid Fund, Axis Dynamic Bond Fund, Axis Gilt Fund , Axis Strategic Bond Fund and Axis Short Term Fund and all

Axis Hybrid Funds since 5th November 2012 (since inception date for Axis Hybrid Funds launched after 5th November, 2012), Axis Credit Risk Fund

and Axis Arbitrage Fund since inception and Axis Treasury Advantage Fund and Axis Regular Saver (Debt portion), Axis Gold Fund, Axis Gold ETF ,

all Axis Fixed Term Plans since 7th June, 2016 (since inception date for Axis Fixed Term Plans launched after 7th June, 2016) and Axis Corporate

Debt Fund since July 13th, 2017. R. Sivakumar is managing Axis Dynamic Bond Fund, Axis Equity Saver Fund (debt potion), Axis Capital Protection

Fund – Series 5, Axis Dynamic Equity Fund & Axis Equity Hybrid Fund since inception, Axis Triple Advantage Fund since 14th September 2010,

Axis Children’s Gift Fund (debt portion) since 7th June 2016.

Axis Mutual Fund

Product Labelling

15

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

Fund Name Riskometer Product Labelling

Axis Corporate Debt Fund (An open ended debt scheme predominantly

investing in AA+ and above rated corporate bonds)

This product is suitable for investors who are seeking*:

• Regular income over short to medium term

• Predominantly investing in corporate debt

Axis Dynamic Bond Fund (An open ended dynamic debt scheme

investing across duration)

This product is suitable for investors who are seeking*

• Optimal returns over medium to long term

• To generate stable returns while maintaining liquidity

through active management of a portfolio of debt and

money market instruments.

Axis Capital Protection Oriented Fund

– Series 5 ((A close ended capital protection oriented fund)


• Capital appreciation with low risk of capital loss over

medium to long term

• Investment in debt and money market instruments as

well as equity and equity related instruments

Product Labelling

16



Axis Hybrid Fund Series – 26,27,33 (42 months close ended debt scheme)


• Capital appreciation while generating income over

medium to long term.

• To Investment in debt and money market

Instruments as well as equity and equity related

Instruments

Axis Gold Fund (An open ended fund of fund scheme investing in

Axis Gold ETF)


• Capital Appreciation over medium to long term

• l Invests predominantly in Axis Gold ETF in order to

generate returns similar to the underlying fund,

subject to tracking error

Product Labelling

17



Axis Equity Saver Fund (An open ended scheme investing in equity,

arbitrage and debt)



medium to long term

• Provide capital appreciation and income distribution to

the investors by using equity and equity related

instruments, arbitrage opportunities, and investments in

debt and money market instruments Axis Children`s Gift Fund (An open ended fund for investment for children,

having a lock-in of 5 years or till the child attains

age of majority (whichever is earlier)


• Capital appreciation & generating income over long term

• Investment in debt and money market instruments as well

as equity and equity related instruments


• Capital appreciation & generating income over long term.

• Investment in a diversified portfolio of equity and equity

related instruments, fixed income instruments & gold

exchange traded funds.

Axis Triple Advantage Fund (An open ended scheme investing in equity, debt

and gold)

Axis Dynamic Equity Fund (An open-ended dynamic asset allocation fund)

This product is suitable for investors who are seeking*:


medium to long term.

• Investment in equity and equity related instruments

as well as debt and money market instruments while

managing risk through active asset allocation.

Axis Mutual Fund

Statutory Details and Risk Factors

Data updated as on 31st Dec 2018.

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.

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.

Scheme specific risk factors: Apart from the risks associated with domestic investments, the scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The material should not be construed as issued by Government of India or any of its authority. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

18 Axis Mutual Fund

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