Bangalore: Axis Mutual Fund, one of India’s leading asset management companies, has announced the launch of the Axis Nifty500 Low Volatility 50 Index Fund. This open-ended index fund is designed to replicate the performance of the Nifty500 Low Volatility 50 TRI (subject to tracking error). The New Fund Offer (NFO) opens on September 09, 2026, and closes on September 22, 2026.

The strategy offers investors a passive, rules-based approach to equity investing by targeting companies that historically exhibit lower price fluctuations.

NFO Snapshot & Scheme Details

ParameterDetails
Scheme NameAxis Nifty500 Low Volatility 50 Index Fund
Scheme TypeOpen-ended scheme replicating/tracking Nifty500 Low Volatility 50 TRI
BenchmarkNifty500 Low Volatility 50 TRI
NFO PeriodSeptember 09, 2026 to September 22, 2026
Fund ManagersNandik Mallik and Rohit Gautam
Minimum Investment₹100 and in multiples of ₹1 thereafter
Exit Load• 0.25% if redeemed/switched out within 15 days of allotment   • Nil if redeemed/switched out after 15 days

Why Choose a Low Volatility Index Fund?

Investing in a low volatility index fund helps reduce portfolio turbulence during market downturns while maintaining broad market participation.

Speaking on the launch, B. Gopkumar, MD & CEO of Axis AMC, highlighted the key benefits of factor-based passive investing:

“As participation in equity markets broadens, the conversation around risk is also evolving. For many investors, the challenge is having the conviction to stay invested when markets fluctuate. We believe investment solutions should increasingly recognise this behavioural dimension of investing. A strategy that can moderate the intensity of market movements can potentially make it easier for investors to remain focused on their long-term goals, rather than reacting to every phase of the market cycle.”

He further added:

“Low volatility investing does not seek to outperform the market in every phase. Instead, it takes a more measured approach to equity exposure by focusing on stocks that have historically experienced lower price volatility. With the launch of this fund, the core objective is not to eliminate market volatility, but to participate in equity markets through a portfolio constructed around a risk reduction characteristic.”

How the Nifty500 Low Volatility 50 Index Works

The Nifty500 Low Volatility 50 Index selects 50 stocks from the broader Nifty 500 universe using a disciplined, quantitative methodology:

  • Selection Universe: Begins with the constituents of the Nifty 500 Index.
  • Filtering Criteria: Applies strict liquidity criteria, followed by a volatility score calculated from historical price behavior.
  • Top 50 Selection: Chooses the 50 stocks with the lowest volatility scores.
  • Weight Assignment: Weights are assigned based on a combination of low-volatility scores and free-float market capitalization, subject to single-stock capping.
  • Semi-Annual Rebalancing: Reconstitution occurs periodically every six months (in June and December) to maintain strategy discipline.

Historical Performance & Risk Profile

Over the 20-year period ending July 31, 2026, the underlying index demonstrated strong resilience compared to the broader market:

  • Compound Annual Growth Rate (CAGR): 16.0% (vs. 13.0% for Nifty 500 TRI)
  • Annualized Volatility: 15.6% (vs. 19.9% for Nifty 500 TRI)
  • Drawdown Resilience: Lower drawdowns during major market corrections allowed the strategy to rebound from a higher base.

Who Should Consider the Axis Nifty500 Low Volatility 50 Index Fund?

The Axis Nifty500 Low Volatility 50 Index Fund combines the low-cost simplicity of passive investing with a factor-based risk management strategy. It serves as a suitable option for:

  1. Long-Term Core Allocation: Investors seeking stable equity growth with reduced drawdown risk.
  2. Portfolio Diversification: An ideal complement to existing market-cap-weighted index funds and active equity schemes.
  3. Behavioral Cushioning: Investors who prefer lower price fluctuations to help them stay invested across various market cycles.