2 days ago
NFO Update: Axis Mutual Fund launches Nifty500 Quality 50 Index Fund
Axis Mutual Fund
, one of India's leading asset management companies, has announced the launch of the
Axis Nifty500 Quality 50 Index Fund
, an open-ended
index fund
tracking the Nifty500 Quality 50 TRI.
The
new fund offer
(NFO) will open for subscription on August 21 and close on September 4.
The fund will be managed by Karthik Kumar and Hitesh Das, and will be benchmarked against the Nifty500 Quality 50 TRI.
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The Axis Nifty500 Quality 50 Index Fund is designed to provide investors with a simple, transparent, and cost-efficient route to invest in 50 of India's high-quality companies, carefully selected from the Nifty 500 universe, according to a release by the fund house.
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The underlying Nifty500 Quality 50 Index selects its constituents based on parameters such as high return on equity, low financial leverage, and stable earnings growth. It follows a disciplined, rules-based methodology that eliminates human bias from the stock selection process, the release said.
'Quality is a time-tested investment factor that has demonstrated resilience during uncertain market phases and the ability to capture upside in growth cycles. With the Axis
Nifty500 Quality 50 Index Fund
, we are offering investors a disciplined, low-cost, and transparent way to gain exposure to India's strong companies—those well-positioned to deliver consistent performance over the long term,' said
B. Gopkumar
, MD & CEO, Axis AMC.
The fund focuses on high-quality companies selected from the broader Nifty 500 universe using this rules-based approach. It emphasizes businesses with robust fundamentals, specifically those exhibiting high return on equity, low financial leverage, and stable earnings growth over the past five years. It also offers diversified exposure across large, mid, and small caps as well as multiple sectors, thereby mitigating concentration risk, the release added.
With a low-cost, transparent, and systematic investment approach, the fund aims to deliver long-term wealth creation with lower volatility compared to broader market indices. The portfolio is rebalanced semi-annually and maintains a maximum stock weight cap to ensure balanced representation. The minimum investment during the NFO is Rs 100, and in multiples of Re 1 thereafter.
'Quality companies often combine strong earnings potential with robust balance sheets and sustainable competitive advantages. Companies in this index are selected based on their return on equity (ROE), financial leverage (Debt/Equity ratio), and earnings (EPS) growth variability. By investing in such businesses across different sectors and market caps, this fund offers investors a portfolio that can weather downturns and participate meaningfully during growth phases. This approach is especially suited for investors looking to build a core equity allocation with stability and long-term returns in focus,' said Ashish Gupta, CIO, Axis AMC.
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The product is suitable for investors seeking long-term wealth creation through an index fund that tracks the returns of the Nifty500 Quality 50 Index. The fund aims to replicate the performance of the stated total return index, subject to tracking error, by investing in its constituents.
Why a quality fund now?
Historically, the Nifty500 Quality 50 Index has shown the ability to outperform the broader market while offering better downside protection during volatile phases. During major corrections such as the Global Financial Crisis and the COVID-19 market crash, the index recorded smaller drawdowns and recovered more quickly than the Nifty 50.
Over the 15 years ending July 2025, the index delivered a compounded annual growth rate (CAGR) of 15.6%, compared to 12.1% for the Nifty 50, while maintaining lower long-term volatility. This combination of resilience and competitive returns makes it a compelling option for investors focused on long-term wealth creation.
