Axis Short Term Fund

1. Axis Short Term Fund (An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years)

2. Axis Short Term Fund An Introduction High quality & low-risk strategy with an endeavor to generate stable returns. It aims to capture opportunities in the yield curve spreads in the short duration segment. • The fund tracks corporate bond v/s Money market instruments spreads closely while making its allocations. • The portfolio stance is expected to benefit from the current rising rate environment and is ideally positioned to take advantage of the opportunities across the yield curve • The corporate bonds exposure remains mainly in higher rated instruments. • 2

3. Portfolio Construction Emphasis on Consistency Credit Analysis & Investment Universe Duration and Yield Curve Alpha Contributors Security Selection and Weighting Mandate and Investment Policy Risk Control Risk Management Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. 3

4. Decision Factors - Rates Fundamental Analysis Valuation Technical Factors Macro variables (growth, inflation) Yield curve slopes Liquidity • • • Real yields Flows, domestic and FPI • • Monetary policy • Credit spreads • Fiscal stance Market positioning • • Cross country valuation • Global macro • External sector • Corporate performance • Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. 4

5. Portfolio Construction Discipline is the key CREDIT PLAY DIFFERENT FROM DURATION PLAY DIVERSIFICATION VALUATION Cautious at selecting sectors Pure accrual play with buy and hold approach Look at credit exposure only during favorable valuation scenario • • • Diversifying the exposure to manage potential risk No active duration call in lower rated papers • • Strict issuer/rating limits • 5

6. YTM ≠ Performance YTMs are a function of market perception of risk Short Term Funds are actively managed portfolios and hence YTMs play a limited role in outperformance. Credit exposure however, adds credit risk • The chart below illustrates a 1 year return spread between funds with higher YTM’s as compared to those with industry average YTMs • Higher YTM Funds have underperformed V/s Lower YTM Funds within the same category 1 Year Returns as of March 2015 (%) 11.25 10.75 Industry Average YTM Funds Higher YTM Funds 10.25 9.75 c 9.25 9.30 9.35 9.40 9.45 9.50 9.55 9.60 9.65 9.70 9.75 9.80 YTM as of March 2014 (%) Source: Axis AMC Internal Analysis. Period: March 2014 to March 2015. Short Term Bond Fund category considered for this illustration. 6

7. Risk Management • Tight Duration Range (3 years) • Stringent credit review • Control credit risk through diversification and strict limits on issuer weighting based on rating Risk Mitigation Framework Sector Credit Diversification Duration Liquidity • Controlled through diversification and stringent review of investable sectors; • Focus on High Quality Issuer • Exposure to each issuer limited by its rating • Strictly adhere to duration limits specified by the investment mandate & investment policy • Liquidity/impact cost part of security selection/portfolio construction. • Investment universe based on credit research Optimize balance of credit quality, returns and liquidity • Regulatory limits on sector Exposure Strategy followed is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. 7

8. Fund Positioning 30th September 2021 High quality & low-risk strategy Capture opportunities in the short term segment Medium term horizon Portfolio Characteristics Average for the last 1 year Average Maturity 2.66 years 75.8% Allocation to High Rated Papers# Macaulay Duration 1.81 years 24.2% Allocation to G-Sec Modified Duration 1.73 years Yield to Maturity^ 4.90% 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. 8

9. Portfolio Exposure Dynamically managed short duration fund Asset Allocation Mix & Average Maturity 100 3.50 Money Market Instruments 3.00 75 2.50 Maturity In Years % of Net Assets 2.00 50 1.50 G-Sec 1.00 25 0.50 Corporate Bonds Aug-18 0 0.00 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 May-21 Apr-17 Apr-18 Apr-19 Apr-20 Apr-21 Aug-21 May-17 Jul-17 May-18 Jul-18 May-19 Jul-19 May-20 Jul-20 Jul-21 Sep-16 Nov-16 Dec-16 Aug-17 Sep-17 Nov-17 Dec-17 Sep-18 Nov-18 Dec-18 Aug-19 Sep-19 Nov-19 Dec-19 Aug-20 Sep-20 Nov-20 Dec-20 Sep-21 Feb-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jan-17 Feb-17 Jun-17 Jan-18 Feb-18 Jun-18 Jan-19 Feb-19 Jun-19 Jan-20 Feb-20 Jun-20 Jan-21 Jun-21 Corporate Debt Government Securities Money Market Instruments Average Maturity (In Years) (RHS) Source: ACEMF. Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. Please refer to Scheme Information Document (SID) for detailed asset allocation and investment strategy. Data As on 30th September 2021 9

10. Performance 30th September 2021 1 Year 3 Year 5 Year Since Inception Current Value of investment of Rs.10,000 Current Value of investment of Rs. 10,000 Current Value of investment of Rs. 10,000 Current Value of investment of Rs. 10,000 CAGR (%) CAGR (%) CAGR (%) CAGR (%) Axis Short Term Fund - Regular Plan - Growth NIFTY Short Duration Debt Index (Benchmark) NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) 5.14% 10,514 8.44% 12,761 7.44% 14,319 7.98% 24,534 5.84% 10,584 8.54% 12,797 7.57% 14,404 8.06% 24,763 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.61% 21,140 Past performance may or may not be sustained in future. Since inception (22 January 2010). Different plans have different expense structure. Devang Shah is managing the scheme since 5th November 2012 and he manages 20 schemes of Axis Mutual Fund. Returns greater than 1 year are Compounded Annual Growth Rates (CAGR). Face Value per unit is Rs 10. Please refer to annexure for all schemes managed by the fund manager. 10

11. Fixed Income Market Update 11

12. Current Account back into Surplus Led by strong capital flows and service exports QE June current account balance reverts to surplus of 0.9% of GDP from a deficit of 1% of GDP in QE March • The overall BoP surplus widened considerably to 4.6% of GDP in QE June from 0.4% in QE March. • Surplus current account provides a much needed cushion during times of uncertainty • With crude at US$80/barrel & USD/INR showing initial weakness, the economy, today, remains significantly better insulated from external shocks • Source: CEIC, Morgan Stanley Research 12

13. RBI Monetary Policy Acting on Liquidity ..Through a calibrated approach to avoid system shocks • Withdrawal of G-SAP program • Increasing VRRR* to Rs 6 lakh Cr by Dec 3. • Precursor to a possible reverse repo hike In its strongest affirmation yet, the RBI has finally set out a glide path for withdrawing liquidity in a gradual and calibrated manner. • May supplement 14-day repos with 28-day repos • Resumption of free market pricing in the long bond space • Targeted liquidity management through on tap OMOs Setting the Stage for Policy Normalization.. *VRRR: Variable Rate Reverse Repo Source of Data: RBI Governor’ Statement, RBI Monetary Policy Statement & RBI post policy press conference dated 8thOctober 2021, Axis MF Research 13

14. RBI’s path to normalization RBI’s Action is in Lock-Step with our forecasts so far We are in Phase 1 of the Normalization Process Phase 2 Phase 3 Normalize Rates Phase 1 Sucking out Excess Liquidity Narrow repo/ reverse repo corridor Repo/reverse repo corridor currently stands at 65 bps. Through a series of gradual hikes in the reverse repo rate we anticipate that the spread is likely to normalize to 25bps (The long term average) Calibrated liquidity via variable reverse repos (VRR) sucking out the liquidity cushion that has been in place since March 2019 withdrawal in durable Simultaneous rate hikes across Repo and Reverse Repo which we anticipate will happen in CY 22. Market rates will also likely trend higher toeing RBI action. RBI Has targeted to withdraw 2-3 lakh Cr of liquidity by December 2021 Source: RBI, Axis MF Research 14

15. Inflation Worst may be behind us A better than expected Kharif Crop and supply side actions by the government have contained food inflation • The RBI has lowered its forecasts for inflation to 5.3%. The withdrawal of accommodative policy is likely to put further downward pressure on inflation • Crude and commodity prices remain key risks to inflation • CPI Inflation since Covid has been averaging near RBI’s upper band 8.0 Inflation Average 6% 7.0 Inflation Average 4% 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21 Source: Bloomberg, Axis MF Research. Data as of 30thSeptember 2021 15

16. Monsoon Update Monsoons in Withdrawal Mode, Record Kharif Crop Expected Sowing levels similar to those in 2020 Till September 29th, cumulative rainfall was at the long-term average • As on Sept. 24, 2021 Rice Pulses Coarse cereals Oilseeds Sugarcane Jute & Mesta Cotton Total 2021 42.0 14.2 17.6 19.5 5.5 0.7 12.0 111.5 2020 41.5 13.9 18.0 19.8 5.4 0.7 12.8 112.0 Change (%) 1.4 2.1 (2.5) (1.3) 2.0 1.0 (6.1) (0.5) The 1st advance estimates indicate food grains production will likely be 4.1% higher at 150.5 mn tons (record high) • With reservoir levels across the country at comfortable levels the withdrawal of the monsoons puts an end to a normal albeit delayed monsoon cycle • Source: Ministry of Agriculture, Indian Metrological Department, Axis MF Research Data as of 8thOctober 2021 16

17. Crude on the Boil Crude touches 7 year High @ US$ 80/barrel Crude Prices driven by higher global demands despite additional capacity from OPEC + Suppliers Crude is India’s biggest economic risk. Budget 2021-22 estimated the fiscal basis India crude price @ US$70/bbl • 82.00 77.00 Incrementally higher crude will have a material impact on the fiscal math & inflation • 72.00 67.00 Sensitivity to 10% rise in oil prices Estimates basis Oil @US$ 70/bbl 62.00 Current account balance (% of GDP) -1.0% 0.30% 57.00 CPI Inflation, YoY% WPI Inflation, YoY% GDP Growth, YoY% Oil taxes (% of GDP FY21) 5.1% 8.3% 10.5% 1.6% 0.40% 0.80% -0.10% -0.06% 52.00 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 WTI Brent (USD/bbl) India Crude Basket (US$/bbl) Source: Bloomberg, Morgan Stanley, Axis MF Research. Data as of 6thOctober 2021 17

18. Product Offerings Fund Positioning Credit Conservative Axis Short Term Fund Axis Credit Risk Fund Axis Banking & PSU Debt Fund Axis Corporate Bond Fund Axis Strategic Bond Fund 83% AAA & Equivalent ,17% Non AAA Mac. Duration – 1.81 years YTM – 4.90%* 100% AAA & Equivalent Mac. Duration – 1.90 years YTM – 5.05%* 57% AAA, 43% Non AAA Mac. Duration – 2.90 years YTM – 6.35%* 100% AAA & Equivalent Mac. Duration – 1.02 years YTM – 4.25%* 36% AAA, 64% Non AAA Mac. Duration – 1.72 years YTM – 6.47%* Strategic Allocation to AA Credits Current Portfolio Allocation/Positioning is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the fixed income markets without any notice to investors. Please refer SID of respective schemes for detailed investment strategies. *The yield to maturity and Macaulay duration given above is based on the portfolio of funds As on 30th September 2021. This should not be taken as an indication of the returns that may be generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. 18

19. Annexures, Disclaimers & Risk Factors 19

20. Annexure SEBI Prescribed Performance Annexures Return of schemes managed by Devang Shah (Total Schemes Managed: 20 Schemes) (As on 30th September 2021) 1 Year Current Value of Investment of Rs. 10,000/- Axis Short Term Fund - Regular Plan - Growth 5.14% 10,514 NIFTY Short Duration Debt Index (Benchmark) 5.84% 10,584 NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Short Term Fund - Direct Plan - Growth 5.87% 10,587 NIFTY Short Duration Debt Index (Benchmark) 5.84% 10,584 NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Short Term Fund - Retail Plan - Growth 5.16% 10,516 NIFTY Short Duration Debt Index (Benchmark) 5.84% 10,584 NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) 3 Years 5 Years Since Inception Current Value of Investment of Rs. 10,000/- 12,761 12,797 Current Value of Investment of Rs. 10,000/- 14,319 14,404 Current Value of Investment of Rs. 10,000/- 24,534 24,763 Date of inception Fund Name CAGR (%) CAGR (%) CAGR (%) CAGR (%) 8.44% 8.54% 7.44% 7.57% 7.98% 8.06% 22-Jan-10 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.61% 21,140 9.16% 8.54% 13,017 12,797 8.17% 7.57% 14,811 14,404 8.79% 8.22% 20,899 19,965 01-Jan-13 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.92% 17,958 8.45% 8.54% 12,763 12,797 7.44% 7.57% 14,321 14,404 7.95% 8.10% 24,261 24,654 02-Mar-10 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.85% 21,555 Refer slide 23 for disclaimer. 20

21. Annexure SEBI Prescribed Performance Annexures Return of schemes managed by Devang Shah (Total Schemes Managed: 20 Schemes) (As on 30th September 2021) 1 Year Current Value of Investment of Rs. 10,000/- Top 3 Schemes Axis Regular Saver Fund - Regular Plan - Growth NIFTY 50 Hybrid Short Duration Debt 25:75 Index (Benchmark) NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Regular Saver Fund - Direct Plan - Growth 19.27% 11,927 NIFTY 50 Hybrid Short Duration Debt 25:75 Index (Benchmark) NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Credit Risk Fund - Regular Plan - Growth 7.49% 10,749 NIFTY Credit Risk Bond Index (Benchmark) 9.94% 10,994 NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Credit Risk Fund - Direct Plan - Growth 8.60% 10,860 NIFTY Credit Risk Bond Index (Benchmark) 9.94% 10,994 NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Strategic Bond Fund - Regular Plan - Growth NIFTY Medium Duration Debt Index (Benchmark) NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) Axis Strategic Bond Fund - Direct Plan - Growth 8.18% 10,818 NIFTY Medium Duration Debt Index (Benchmark) NIFTY 10 yr Benchmark G-Sec (Additional Benchmark) 3 Years 5 Years Since Inception Current Value of Investment of Rs. 10,000/- Current Value of Investment of Rs. 10,000/- Current Value of Investment of Rs. 10,000/- Date of inception Fund Name CAGR (%) CAGR (%) CAGR (%) CAGR (%) 17.93% 11,793 9.03% 12,972 7.54% 14,383 8.21% 24,243 16-Jul-10 17.44% 11,744 11.61% 13,916 10.25% 16,297 9.66% 28,144 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.80% 20,918 10.13% 13,367 8.72% 15,193 9.94% 22,906 17.44% 11,744 11.61% 13,916 10.25% 16,297 10.07% 23,136 04-Jan-13 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.87% 17,873 6.67% 10.01% 12,146 13,326 6.42% 8.72% 13,651 15,194 7.51% 9.35% 16,860 19,063 15-Jul-14 3.64% 10,364 8.65% 12,833 5.97% 13,366 7.85% 17,258 7.86% 10.01% 12,557 13,326 7.70% 8.72% 14,495 15,194 8.73% 9.35% 18,296 19,063 15-Jul-14 3.64% 10,364 8.65% 12,833 5.97% 13,366 7.85% 17,258 7.42% 10,742 8.23% 12,685 7.58% 14,414 8.59% 21,903 28-Mar-12 7.15% 10,715 10.23% 13,404 8.12% 14,779 8.90% 22,503 3.64% 10,364 8.65% 12,833 5.97% 13,366 7.35% 19,642 8.97% 12,949 8.31% 14,906 9.22% 21,612 7.15% 10,715 10.23% 13,404 8.12% 14,779 8.61% 20,570 07-Jan-13 3.64% 10,364 8.65% 12,833 5.97% 13,366 6.84% 17,825 21 Refer slide 23 for disclaimer.

22. Annexure SEBI Prescribed Performance Annexures 1 Year 3 Years 5 Years Since Inception Current Value of Investment of Rs. 10,000/- Current Value of Investment of Rs. 10,000/- Current Value of Investment of Rs. 10,000/- Current Value of Investment of Rs. 10,000/- Date of inception Fund Name CAGR (%) CAGR (%) CAGR (%) CAGR (%) Bottom 3 Schemes Axis Liquid Fund - Regular Plan - Growth 3.20% 10,320 5.08% 11,604 5.83% 13,277 7.23% 23,095 NIFTY Liquid Index (Benchmark) NIFTY 1 Year T-Bill Index (Additional Benchmark) Axis Liquid Fund - Direct Plan - Growth 3.42% 10,342 5.07% 11,600 5.74% 13,223 7.19% 22,973 09-Oct-09 4.25% 10,425 6.51% 12,084 6.47% 13,685 6.70% 21,745 3.27% 10,327 5.14% 11,625 5.90% 13,320 7.11% 18,245 NIFTY Liquid Index (Benchmark) NIFTY 1 Year T-Bill Index (Additional Benchmark) Axis Liquid Fund - Retail Plan - Growth 3.42% 10,342 5.07% 11,600 5.74% 13,223 6.96% 18,017 31-Dec-12 4.25% 10,425 6.51% 12,084 6.47% 13,685 7.10% 18,228 2.68% 10,268 4.57% 11,436 5.29% 12,939 6.85% 21,548 NIFTY Liquid Index (Benchmark) NIFTY 1 Year T-Bill Index (Additional Benchmark) Axis Gold ETF 3.42% 10,342 5.07% 11,600 5.74% 13,223 7.31% 22,665 01-Mar-10 4.25% 10,425 6.51% 12,084 6.47% 13,685 6.80% 21,431 -9.28% 9,072 13.83% 14,767 6.24% 13,537 6.39% 19,643 10-Nov-10 Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 7.77% 22,595 Axis Gold Fund - Regular Plan - Growth -9.28% 9,072 13.85% 14,774 6.48% 13,689 3.54% 14,139 20-Oct-11 Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 5.74% 17,429 Axis Gold Fund - Direct Plan - Growth -9.04% 9,096 14.18% 14,904 6.98% 14,015 3.33% 13,322 01-Jan-13 Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 4.76% 15,022 22 Refer slide 23 for disclaimer.

23. Performance disclaimer Past Performance may or may not be sustained in future. #Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of the scheme. Data As on 30th September 2021. Past performance may or may not be sustained in future. Calculations are based on Regular Plan - Growth Option NAV and Direct Plan - Growth Option NAV, as applicable. Face Value per unit: 1,000/- for Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Money Market Fund, Axis Overnight Fund and Axis Banking & PSU Debt Fund, Rs. 1/- for Axis Gold ETF, Axis AAA Bond Plus SDL ETF - 2026 Maturity, Rs. 10/- for Axis Nifty ETF, Axis Healthcare ETF, Rs. 100/- for Axis Banking ETF, Axis Technology ETF and Rs. 10/- for all other schemes. Different plans have different expense structure. Devang Shah is managing Axis Liquid Fund, Axis Dynamic Bond Fund, Axis Gilt Fund , Axis Strategic Bond Fund and Axis Short Term Fund, Axis Credit Risk Fund and Axis Arbitrage Fund since inception and Axis Treasury Advantage Fund and Axis Regular Saver Fund (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, Axis Money Market Fund since inception. 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. 23

24. Product Labelling 24

25. Product Labelling 25

26. Statutory Details and Risk Factors Data updated As on 30th September 2021 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. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. 26

27. Thank You