1

What is Passive Investing ?

Low friction investment strategy tracking a pre-specified benchmark/index

Participates in the
Removes the risk constituents in the
of security same proportion
selection as the index

ETFs and Index

Efficient low Relies on broader Funds are popular
cost strategy market wisdom vehicles to passive
investing

ETFs and Index Funds - Minimum investment in securities of a particular index (which is being replicated/ tracked)-95% of total assets as per
SEBI Categorization Circular dated October 6, 2017
2
Rising popularity of Passive Strategies in India

AUM of Passive Strategies has grown more than 8X in 5 years

800,000

700,000
673,343
600,000

500,000
422,828
400,000

300,000
231,334
200,000
144,717
100,000 80,849

-
Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22

Source: MFI Explorer, Axis MF Research Data as on 31st January 2023. Includes Exchange Traded Funds and Index Funds as categorized by AMFI. The
above graph is used to explain the concept and is for illustration purpose only and should not used for development or implementation of an investment 3
strategy. Past performance may or may not be sustained in future.
Passive strategies: ETFs and Index Funds

Exchange
Traded Funds Index Funds

What are they? Passive funds tracking an index

Trade like a stock NAV based investment

How to invest?
on the exchange like Mutual Fund

Fund TER + trading costs Fund TER (Direct/

Cost of investing
(brokerage etc.) Regular plan)

Brokerage
Brokerage Account account is required to Not required
trade in ETFs

Along with lumpsum,

MF special
Not available facilities such as SIP, STP,
products availability SWP etc. are available

Source: Axis AMC Internal Analysis. TER: Total Expense Ratio, ETF: Exchange Traded Fund, SIP: Systematic Investment Plan, STP:
Systematic Transfer Plan, SWP: Systematic Withdrawal Plan. Please refer respective Index Fund schemes SID/KIM uploaded on website for 4
detail pertaining to special products availability
How does an ETF work?

Primary Market Secondary Market

Seller

Units of ETF Cash

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

Redemption Creation
in kind Cash Units of ETF
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 5
through distribution agents of Axis Mutual Fund and at ISCs.
Introducing
Axis S&P BSE Sensex ETF
(An Open-Ended Exchange Traded Fund tracking S&P
BSE Sensex TRI)
 About S&P BSE Sensex
A representation of Large Cap Companies

•The S&P BSE Sensex is the first stock index in the

Quick Facts S&P BSE Sensex
Indian Stock Market.
•It is designed to measure the performance of the 30 No of stocks 30
largest, most liquid and financially sound companies 5 year return 13.06%
across key sectors of the Indian economy that are
3 Yrs Std Dev 22.7%
listed at BSE Ltd
•The index represents large cap companies and PE 22.34
covers more than 40% of the total market cap of the PB 3.29
listed universe at BSE Ltd Dividend yield 1.12%

Source: www.asiaindex.co.in. Data as on 31st January 2023. Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full
market capitalization. PE – Price to Earnings Ratio, PB – Price to Book Ratio. Past Performance may or may not be sustained in the future.
7
Index Constituents

Take exposure to 30 companies in a neatly packed bite sized ETF

CMP(in Rs.) CMP(in Rs.) CMP(in Rs.)

Asian Paints Ltd 2827 IndusInd Bank Ltd 1109 Reliance Industries Ltd 2415

Axis Bank Ltd 847 Infosys Ltd 1593 State Bank of India 525

Bajaj Finance Ltd 6367 ITC Ltd 384 Sun Pharmaceutical Industries Ltd 985

Bajaj Finserv Ltd 1405 Kotak Mahindra Bank Ltd 1737 Tata Consultancy Services Ltd 3486 Axis
S&P BSE
Bharti Airtel Ltd 779 Larsen & Toubro Ltd 2225 Tata Motors Ltd 443 Sensex ETF
60.69
HCL Technologies Ltd 1115 Mahindra & Mahindra Ltd 1346 Tata Steel Ltd 112

HDFC Bank Ltd 1640 Maruti Suzuki India Ltd 8690 Tech Mahindra Ltd 1144

Hindustan Unilever Ltd 2511 Nestle India Ltd 18821 Titan Co Ltd 2475

Housing Development Finance Corp 2655 NTPC Ltd 168 UltraTech Cement Ltd 7427

ICICI Bank Ltd 852 Power Grid Corp of India Ltd 216 Wipro Ltd 407

Source: www.asiaindex.co.in. Axis MF Internal Research. Data as on 20th February 2023. Stock prices taken as of close on 20th February 2023. Axis S&P BSE Sensex ETF
unit value will correspond to roughly 1/1000th value of S&P BSE Sensex. Value of S&P BSE Sensex as on close of 20th February 2023 was Rs. 60,691.54. Price of Axis S&P
BSE Sensex 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.The Stocks mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or 8
implementation of any investment strategy. It should not be construed as investment advice to any party. Past performance may or may not be sustained in future.
Sector Diversification with S&P BSE Sensex
An opportunity to participate in various sectors through a single index

1.84% 1.24%
1.54% 1.31%
2.22%
2.76%
1.49%
Finance
3.89%
Information Technology
Oil & Gas
Fast Moving Consumer Goods
4.66%
Transport Equipments
40.63%
Capital Goods
Consumer Durables
9.11%
Telecommunication
Power
Healthcare
Metals & Mining
12.06% Chemicals
Housing Related

17.24%

Source: RBI & Bloomberg. Data as of 20th February 2023. Above sectors may or may not be a part of portfolio. Stock(s)/ Issuer(s)/ Top stocks
with increased or decreased exposure mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be 9
construed as recommendation to buy/ sell/ hold.
Looking to beat Inflation?
S&P BSE Sensex has the potential to create sizeable wealth for investors over a period of time

Historical Performance 1986 - 2022

70,000.00

60,000.00

50,000.00

40,000.00

30,000.00

20,000.00

10,000.00

- 87 -88 r-89 r-90 -91 -92 l-93 -94 -95 t-96 -97 -98 -00 -01 r-02 r-03 -04 -05 l-06 -07 -08 t-09 -10 -11 -13 -14 r-15 r-16 -17 -18 l-19 -20 -21 t-22
n b y n g p v c n b y n g p v c n b y n g p
Ja Fe Ma Ap Ma Ju Ju Au Se Oc No De Ja Fe Ma Ap Ma Ju Ju Au Se Oc No De Ja Fe Ma Ap Ma Ju Ju Au Se Oc

Source: www.asiaindex.co.in. Data as of 31st January 2023. The above chart is for illustration purpose only. Past performance may or may not be 10
sustained in the future.
S&P BSE Sensex Performance

S&P BSE Sensex has given a positive return in 17 out of 20 calendar years

2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
-60.00% -40.00% -20.00% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Source: Bloomberg. Data as of 31st January 2023. Past performance may or may not be sustained in the future. The above graph has
been used for illustrative purposes only.
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S&P BSE Sensex at reasonable valuations
Over longer periods, the Sensex has traded at fair values

Sensex P/E – 1 Yr. Fwd Sensex P/B – 1 Yr. Fwd

30.00

3.60

25.00 3.40

3.20

20.00

3.00

15.00 2.80
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Axis MF Internal Research. The above graph is used to explain the concept and is for illustration purpose only and should not used
for development or implementation of an investment strategy. Past performance may or may not be sustained in future.
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Achieving investor objectives with Axis S&P BSE Sensex ETF

Elimination of Bias
As the fund invests in the underlying index, it eliminates fund manager bias
while purchasing/selling securities

Consistent style
The index represents 30 companies selected from the universe of
S&P BSE Sensex based on free-float market capitalization.

Liquidity
Axis S&P BSE Sensex ETF does not have an entry or an exit load,
thereby providing easy liquidity to investors

Market linked returns

Axis S&P BSE Sensex ETF provides real time NAV to investors

Source: Axis MF Internal Research. 13

Axis S&P BSE Sensex ETF

Fund Snapshot
Minimum
Investment Category
Rs. 5,000 and in Exit Load Open ended Exchange
multiples of Re. 1/- Nil Traded Fund
thereafter

Open ended Exchange Traded Fund

Scheme Name
Axis S&P BSE Fund Manager
Sensex Ashish Naik
ETF Creation Unit Size Benchmark
40,000 units S&P BSE Sensex
TRI

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Product Labelling

Fund Scheme & Benchmark Product Labelling Product Risk-o-meter Benchmark Risk-o-meter

This product is suitable for investors who are seeking*

AXIS S&P BSE SENSEX ETF • Long term wealth creation solution
(An Open Exchange Traded Fund tracking S&P BSE • An index fund that seeks to track returns by investing in a basket of S&P
Sensex TRI) BSE Sensex TRI Index stocks and aims to achieve returns of the stated
index, subject to tracking error.
Benchmark: S&P BSE Sensex TRI
*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).
Statutory Details: 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 Ltd. 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.
15
Disclaimer, Statutory Details and Risk Factors
Disclaimer: Past performance may or may not be sustained in the future.
Source: Asia Index Private Limited.
“The S&P BSE SENSEX (the “Index”) is published by Asia Index Private Limited (“AIPL”), which is a joint venture among affiliates of S&P Dow Jones Indices LLC
(“SPDJI”) and BSE Limited (“BSE”), and has been licensed for use by Axis AMC Ltd (“Licensee”). Standard & Poor’s® and S&P® are registered trademarks of
Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). BSE® and
SENSEX® are registered trademarks of BSE. The trademarks have been licensed to AIPL and have been sublicensed for use for certain purposes by Licensee.
Licensee’s Axis S&P BSE Sensex ETF (the “Product”) is/are not sponsored, endorsed, sold or promoted by AIPL, SPDJI, Dow Jones, S&P, any of their respective
affiliates (collectively, “S&P Dow Jones Indices”) or BSE. None of AIPL, S&P Dow Jones Indices or BSE makes any representation or warranty, express or implied, to
the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product particularly or the ability of the
Index to track general market performance. AIPL’s, S&P Dow Jones Indices’ and BSE’s only relationship to Licensee with respect to the Index is the licensing of the
Index and certain trademarks, service marks and/or trade names of AIPL, S&P Dow Jones Indices, BSE and/or their licensors. The S&P BSE Sensex is determined,
composed and calculated by AIPL or its agent without regard to Licensee or the Product. None of AIPL, S&P Dow Jones Indices or BSE are responsible for and have
not participated in the determination of the prices, and amount of the Product or the timing of the issuance or sale of the Product or in the determination or calculation
of the equation by which the Product is to be converted into cash, surrendered or redeemed, as the case may be. AIPL, S&P Dow Jones Indices and BSE have no
obligation or liability in connection with the administration, marketing or trading of the Product. There is no assurance that investment products based on the Index will
accurately track index performance or provide positive investment returns. AIPL and S&P Dow Jones Indices LLC are not investment advisors. Inclusion of a security
within an index is not a recommendation by AIPL, S&P Dow Jones Indices or BSE to buy, sell, or hold such security, nor is it considered to be investment advice.

AIPL, S&P DOW JONES INDICES, BSE AND THEIR THIRD PARTY LICENSORS DO NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE
COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO. AIPL, S&P DOW JONES INDICES, BSE AND THEIR THIRD PARTY LICENSORS SHALL
NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. AIPL, S&P DOW JONES INDICES, BSE AND
THEIR THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PRODUCT, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING,
IN NO EVENT WHATSOEVER SHALL AIPL, S&P DOW JONES INDICES, BSE, THEIR THIRD PARTY LICENSORS AND / OR THE LICENSEE BE LIABLE FOR ANY
INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES,
LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT
LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN AIPL AND LICENSEE,
OTHER THAN THE LICENSORS OF AIPL (INCLUDING S&P DOW JONES INDICES AND/OR BSE). NO THIRD PARTY BENEFICIARY OF AIPL SHALL HAVE ANY
RIGHT AGAINST THE LICENSEE AND AIPL SHALL AT ALL TIMES BE RESPOSIBLE TO DEAL WITH THE LICENSEE AND BE RESPONSIBLE TO THE LICENSEE
UNDER THIS AGREEMENT.”
17
Disclaimer, Statutory Details and Risk Factors
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).
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.
BSE Disclaimer:
“It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the SID has been cleared or
approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for
the full text of the Disclaimer clause of the BSE Limited“. Needless to add that AXIS Mutual Fund should obtain all other necessary statutory approvals of the
concerned regulatory authorities for the offer. The Exchange is also pleased to grant its in principle approval of the AXIS Mutual Fund's listing application seeking
permission for the units of AXIS S&P BSE SENSEX ETF, to be dealt in on the Exchange subject to AXIS Mutual Fund completing post-offer requirements and
complying with the necessary statutory, legal & listing formalities.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank You