Axis Mutual Fund Launches Axis Nifty500 Quality 50 Index Fund

• A low-cost, transparent solution for investors seeking high-quality equity exposure

Mumbai: Axis Mutual Fund, one of India’s leading asset management companies, today announced the launch of the Axis Nifty500 Quality 50 Index Fund, an open-ended Index Fund tracking the Nifty500 Quality 50 TRI. The fund will be managed by Mr. Karthik Kumar & Mr. Hitesh Das (Fund Managers).

The Axis Nifty500 Quality 50 Index Fund is designed to provide investors with a simple, transparent and cost-efficient route to invest in fifty of India’s high quality companies, carefully selected from the Nifty 500 universe. 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, with a disciplined, rules-based methodology that removes human bias from the stock selection process.

Speaking on the launch, B. Gopkumar, MD & CEO, Axis AMC, said, “Quality is a time-tested investment factor that has shown not only resilience during uncertain market phases but also the ability to capture upside in growth cycles. With the Axis Nifty500 Quality 50 Index Fund, we are providing investors a disciplined, low-cost and transparent way to gain exposure to India’s strong companies—those that are well positioned to deliver relatively consistent performance over the long term.”

Why Quality?

Historically, the Nifty500 Quality 50 Index has demonstrated an ability to outperform the broader market while offering better downside protection during periods of volatility. During major corrections such as the Global Financial Crisis and the COVID-19 market crash, the index experienced smaller drawdowns and recovered more swiftly than the Nifty 50. Over a 15-year period ending July 2025, it delivered a compounded annual growth rate of 15.6% compared to the Nifty 50’s 12.1%, with lower long-term volatility. This combination of resilience and competitive returns makes it an interesting option for long-term wealth creation.

Key Attributes of Axis Nifty500 Quality 50 Index Fund

The Axis Nifty500 Quality 50 Index Fund is characterized by its focus on high-quality companies selected from the broader Nifty 500 universe using a disciplined, rules-based methodology. The fund emphasizes companies with strong fundamentals, specifically those exhibiting high return on equity, low financial leverage, and stable earnings growth over the past five years. Further, the fund offers diversified exposure across large, mid, and small caps as well as multiple sectors, mitigating concentration risk.

With a low-cost, transparent, and systematic investment approach, the fund aims to provide long-term wealth creation with lower volatility compared to broader market indices. It is rebalanced semi-annually and maintains a maximum stock weight cap to ensure balanced representation. The minimum investment during the NFO is ₹100, making it accessible for a wide range of investors.

Ashish Gupta, CIO, Axis AMC asserted, “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 periods of growth. This approach is especially well suited for investors looking to build a core equity allocation with a focus on stability and long-term returns.”

The New Fund Offer (NFO) will open for subscription from 21st Aug 2025 to 4th Sep 2025.