Axis Consumption ETF Invest in the brightest Consumer names at your pace - NFO Opens
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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 Apollo Hospitals
Health & Well Being
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)
38.4 38.5 40.3 41.8 40.6
35.6
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
107.8 119.7
90.1 98.4
70.3 79.8
60.0
• 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. 9About 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
Source: NSE Indices. MOSL, Axis MF Research, Data as of 31st July 2021
10Performance
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.
11Axis 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
Investment (NFO) Unit Value
Unit Creation 1/100 of the value
Rs. 5,000 and in In Demat mode
multiples of of NIFTY India
only* Consumption
Rs. 1/- thereafter
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 Depository Participant of NSDL/CDSL and will be required to indicate it in the application form.
12Passive Investing
With Axis MF
13
14Introduction 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
14What 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
the performance portfolio of the at market
underlying determined small ticket size
of an index
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. 15ETF Investing
The best of both worlds
Combines benefits of index based investing with stock listing
Listed on an
Similarity with index funds
Low cost vehicle
exchange
Similarity with stocks
Traded on all
Replicates an Index business days
Low expense ratio Can put limit orders
Open-ended structure Demat holding
16Benefits 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
17The 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.
18Axis 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 Fund of Funds
schemes make investments. 19Product 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 Index Fund 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.
20Product 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.
21Statutory 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 Axis Bank(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.
22Thank You
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