NFO Alert: Axis Mutual Fund announces launch of Axis Nifty India Defence Index Fund

Axis Mutual Fund has announced the launch of its new fund offering, Axis Nifty India Defence Index Fund, an open-ended Index Fund that invests in the constituents of Nifty India Defence TRI.

The new fund offer or NFO of the fund will open for subscription on April 10 and close on April 24.

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The Axis Nifty India Defence Index Fund aims to provide returns, before expenses, that closely correspond to the performance of the Nifty India Defence Total Return Index (TRI), subject to tracking error.

The fund offers investors a low-cost solution that is a systematic and transparent way to participate in the long‑term structural opportunity emerging from rising global defence spending, India’s accelerating defence modernisation, and the government’s strong push toward domestic manufacturing and exports.

The Axis Nifty India Defence Index Fund by replicating the underlying index, aims to track a focused basket of companies that derive a meaningful portion of their revenues from defence‑related activities.

The underlying index includes companies engaged in aerospace and defence equipment, shipbuilding, explosives, and allied services, selected through defined eligibility criteria and weighted by free‑float market capitalisation with appropriate caps. The index is rebalanced semi‑annually, ensuring discipline and transparency.

“India’s defence sector is undergoing a multi‑year transformation, supported by rising budgets, strong policy intent, and expanding export opportunities. Through the Axis Nifty India Defence Index Fund, we are offering investors a low‑cost, rules‑based way to participate in this structural growth theme. This fund is well‑suited for investors with a long‑term perspective who are looking to align their portfolios with India’s strategic and manufacturing priorities,” said B. Gopkumar, MD & CEO, Axis AMC.

The fund will be managed by Nandik Mallik and Rohit Gautam, and follows a passive investment approach, eliminating fund‑manager bias while offering diversification across leading defence‑focused companies.

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Given the thematic nature of the sector, investors should expect higher volatility in the short to medium term and are encouraged to consider this fund as a long‑term allocation, preferably through systematic investment plans.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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