Axis Mutual Fund has launched a new fund offer for the Axis Nifty500 Low Volatility 50 Index Fund, an open ended index fund. The NFO opens on 9 September 2026 and closes on 22 September 2026.
The scheme aims to give you returns, before expenses, that track the Nifty500 Low Volatility 50 TRI. This index picks 50 stocks from the wider Nifty 500 that have shown comparatively lower price swings, not the biggest or fastest growing names.
Investors who want broad equity exposure but are wary of sharp price swings may find this worth understanding. As a passive fund, it has no fund manager picking stocks. It mirrors the index, which usually keeps costs lower than active management.
Axis Nifty500 Low Volatility 50 Index Fund NFO Details
Particular | Details |
Axis Nifty500 Low Volatility 50 Index Fund | |
Fund type | Open ended, passively managed index fund |
Category | Index Fund |
Nature of scheme | Replicates or tracks the Nifty500 Low Volatility 50 TRI |
Benchmark | Nifty500 Low Volatility 50 TRI |
Fund managers | Mr. Nandik Mallik and Mr. Rohit Gautam (managing since inception) |
NFO opens | 9 September 2026 |
NFO closes | 22 September 2026 |
Allotment date | Not available |
Minimum / additional investment | Rs 100, and in multiples of Re 1 thereafter |
SIP amount | Rs 100 (daily, weekly, monthly); Rs 12,000 (yearly) |
NAV | Rs 10 per unit during the NFO |
Stamp duty | 0.005 percent of the transaction value |
Entry load | Nil |
Exit load | 0.25 percent if redeemed or switched out within 15 days of allotment; nil after 15 days |
About Axis Mutual Fund
Particular | Details |
AMC name | Axis Asset Management Company Limited (Axis Mutual Fund) |
Assets under management | ₹3,77,445 crore |
Website | |
Registered office | Lower Parel, Mumbai 400013 |
Contact number | 8108622211 |
Source: AMFI India: New fund offer: Axis Nifty500 Low Volatility 50 Index Fund
What Has Axis Mutual Fund Launched?
The Axis Nifty500 Low Volatility 50 Index Fund is an open ended, passive index fund. It does not try to beat the market; it copies the Nifty500 Low Volatility 50 TRI as closely as it can.
This index picks 50 stocks from the wider Nifty 500, choosing the ones that have shown lower volatility, or smaller day to day price swings, over a set look back period.
At least 95 percent of assets go into these index stocks. The rest sits in money market instruments or liquid mutual fund units, to manage inflows and outflows without disturbing the core holdings.
How Does the Fund’s Index Strategy Work?
The fund’s job is to hold the same 50 stocks as the index, in the same proportion. Money coming in buys more of those stocks in index weights. Redemptions are met by selling a small slice across the same holdings. NSE Indices reviews and rebalances the index twice a year, and can step in between reviews if a stock is suspended or delisted. When the index changes, the fund follows.
Step | What happens? |
1 | You invest via the NFO, or later via lump sum or SIP. |
2 | Your money buys the 50 index stocks, in index weights. |
3 | NSE Indices reviews the index each June and December; top 25 stocks by quality score are added, those ranked beyond 75 removed. |
4 | The fund rebalances within 7 calendar days of any change. |
5 | A suspension, delisting or corporate action can trigger an ad hoc rebalance. |
6 | Each quarter, the index is checked against SEBI’s concentration norms. |
Let’s Understand Through an Example
Say the index holds company A at a 3 percent weight and company B at 1.5 percent, alongside 48 other stocks. If you invest Rs 10,000, your money splits across all 50 stocks in these proportions, not by anyone’s stock picks. If the index swaps B for C in its half yearly review, the fund follows suit.
Portfolio Allocation
Instrument | Minimum | Maximum |
Equity: index constituents | 95% | 100% |
Money market / liquid fund units | 0% | 5% |
The scheme may also take short term equity derivative exposure, up to 15 percent of net assets, around rebalancing. It does not invest in REITs, InvITs or overseas securities.
Investment Strategy
This is a full replication passive strategy. The fund does not time the market or overweight stocks it finds attractive; it follows the index weights as closely as regulations allow. Some gap between the fund’s return and the index’s, called tracking error, is normal, and can come from expenses, cash held for liquidity, or a short lag before an index change is reflected.
Risk control works through the index rules: no single stock exceeds 25 percent, and the top three together stay under 65 percent. For liquidity, the fund keeps up to 5 percent in money market instruments.
Potential Benefits of This Fund
Potential benefit | Why does it matter? |
Steadier stock exposure | Spreads money across 50 stocks picked for lower historical price swings. |
Rule based process | Selection follows a published index method, not manager discretion. |
Lower cost structure | Passive management usually costs less, especially in the Direct Plan. |
Wider diversification | Draws from the full Nifty 500, not just the top 50 or 100 by size. |
Low entry point | Start with as little as Rs 100, via NFO or SIP. |
Key Risks to Know
Risk | What does it mean? |
Market risk | Stock prices can fall with broader market conditions, taking your investment value down with them. |
Tracking error | The fund’s return may differ slightly from the index’s, due to expenses or timing lags. |
Concentration risk | Returns depend on just 50 stocks, even with SEBI’s diversification limits. |
Liquidity risk | A hard to trade constituent stock can make rebalancing harder. |
Derivative risk | Short term derivative use during rebalancing carries mispricing and correlation risks. |
Who May Consider This Fund?
Investor type | Why it may fit |
Long term investors, 5 years plus | Equity needs time to ride out short term price swings. |
SIP investors building a core portfolio | Works as one block within a diversified, goal based plan. |
Cost conscious, passive minded investors | Prefer a rule based, lower cost approach over stock picking. |
Investors wanting a steadier equity option | Built around lower volatility Nifty 500 stocks. |
Who May Not Find It Suitable?
Investor type | Why it may not fit |
Goals under 3 to 5 years | Equity funds are not designed for short term money. |
Those wanting guaranteed returns | This equity scheme carries no capital guarantee. |
Those wanting active manager calls | A passive fund never deviates from the index. |
Those seeking only the largest names | Constituents are chosen for volatility, not size. |
How the Fund Compares With Traditional Investment Options
Feature | Fixed Deposit | Debt Mutual Fund | Hybrid Fund | Equity Mutual Fund | This New Fund |
Risk | Low | Low to moderate | Moderate | High | High |
Return potential | Fixed | Moderate | Moderate to high | High, market linked | High, market linked |
Volatility | None | Low | Moderate | High | Lower within equities |
Liquidity | Limited, often a penalty | High | High | High | High, open ended |
Investment horizon | Fixed tenure | Short to medium | Medium | 5 years plus | 5 years plus |
Suitable investor | Capital protection seekers | Conservative investors | Balanced risk takers | Growth seekers | Growth seekers wanting a steadier basket |
Axis Nifty500 Low Volatility 50 Index Fund Review by Zenith Finserve
The Axis Nifty500 Low Volatility 50 Index Fund fits the equity sleeve of a long term portfolio, for investors with a five year plus horizon who do not need this money for short term goals. Being an equity scheme, it carries market risk throughout, and does not protect capital. The low volatility tilt is a specific characteristic, not a promise of smoother returns in every market phase, since it reflects how these 50 stocks have behaved historically.
For someone who already holds a broad market index fund, this scheme can add a diversification angle rather than replace it. As with any fund, evaluate your goals, time horizon and portfolio before deciding whether it fits, ideally with a qualified financial adviser.
How Zenith Finserve Can Help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments. We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Read our comprehensive financial management guide or about Zenith Finserve.
Similar NFOs on Zenith
Axis Nifty50 Equal Weight Index Fund NFO: an equal weight Nifty 50 launch, versus this low volatility factor fund.
Axis Nifty Energy Index Fund NFO: an Axis sector fund, versus this scheme’s broader approach.
Invesco India Nifty India Defence Index Fund NFO: a thematic fund, useful for comparing a sector bet against this diversified fund.
Mirae Asset BSE Information Technology Index Fund NFO: another sector fund, versus this scheme’s spread across sectors.
Related reading: our guide to Specialised Investment Funds and our Systematic Withdrawal Plan overview.
Axis Nifty500 Low Volatility 50 Index Fund NFO: Frequently Asked Questions
What is the Axis Nifty500 Low Volatility 50 Index Fund?
A new open ended index fund from Axis Mutual Fund that tracks the Nifty500 Low Volatility 50 TRI.
When does the Axis Nifty500 Low Volatility 50 Index Fund NFO open and close?
It opens on 9 September 2026 and closes on 22 September 2026.
What is the minimum investment in this NFO?
Rs 100, and in multiples of Re 1 after that.
Is Axis Nifty500 Low Volatility 50 Index Fund NFO good to invest in?
That depends on your goals, time horizon and portfolio. It suits long term equity investors comfortable with market risk, not short term savings.
What does the fund invest in?
At least 95 percent in the 50 index stocks, with a small allocation to money market instruments.
Who manages the fund?
Mr. Nandik Mallik and Mr. Rohit Gautam, who also manage several other Axis index funds.
What is the exit load on this fund?
0.25 percent within 15 days of allotment, and nil after that.
How is this fund different from a regular Nifty 500 index fund?
A regular Nifty 500 fund holds all 500 stocks by weight. This one holds only 50, chosen for lower volatility.
Does this fund guarantee lower risk than other equity funds?
No. It remains an equity fund with market risk, reflecting past behaviour, not a guarantee.
Where can I read the full offer document?
The Scheme Information Document is available on the AMC’s website and through AMFI’s NFO listings.
