Mumbai, 8th September 2026: Axis Mutual Fund, one of India’s leading asset management companies, has announced the launch of the Axis Nifty500 Low Volatility 50 Index Fund, an open-ended index fund designed to track the performance of Nifty500 Low Volatility 50 TRI, subject to tracking error. The New Fund Offer (NFO) will open on September 09, 2026 and close on September 22, 2026. Essentially, the fund offers investors a passive, rules-based approach to investing in the equity market, through an index that is designed to identify stocks that have demonstrated relatively lower fluctuations in their prices.
Commenting on the launch, B. Gopkumar, MD & CEO, Axis AMC, said, “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. This is an important role that Low Volatility based passive strategies can play in a portfolio.”
He further added that, “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.”
Understanding the Nifty500 Low Volatility 50 Index
Historically, the Nifty500 Low Volatility 50 TRI has exhibited lower volatility than the Nifty 500 across multiple time periods. Over the 20-year period ended July 31, 2026, the index delivered a CAGR of 16.0%, compared with 13.0% for the Nifty 500 TRI, while annualised volatility was 15.6% versus 19.9% for the Nifty 500 TRI. The strategy has also demonstrated relatively lower drawdowns during major market corrections. The lower drawdown during these periods meant that the strategy started its subsequent recovery from a relatively higher base.
The Nifty500 Low Volatility 50 Index starts with constituents of the Nifty 500 Index and applies liquidity eligibility criteria before calculating a low volatility score based on historical price behaviour. The 50 stocks with the lowest volatility scores are selected for inclusion in the index. Stock weights are determined using the low volatility score and free-float market capitalisation, subject to prescribed caps. The index is rebalanced semi-annually in June and December.
Axis Nifty500 Low Volatility 50 Index Fund
The Axis Nifty500 Low Volatility 50 Index Fund is an open-ended index fund that seeks to replicate the performance of the Nifty500 Low Volatility 50 TRI, subject to tracking error. The fund provides exposure to a portfolio of 50 stocks selected from the Nifty 500 universe based on a transparent, rules-based methodology. The index is designed to include stocks that have exhibited relatively lower price volatility over time, while maintaining diversification across sectors and market capitalisations. The portfolio is reconstituted and rebalanced periodically (every 6 months) in line with the index methodology, enabling investors to gain access to a disciplined factor-based investment approach through a passive fund structure.
The fund combines the simplicity and transparency of passive investing with a rules-based low-volatility factor approach, making it a suitable option for investors seeking broad market participation through a portfolio of relatively stable companies. It can serve as a core allocation for investors looking for a disciplined, long-term equity solution or as a complement to existing market-cap-based index exposures.
Source: BSE/ NSE Indices/ Bloomberg/ RBI/ Axis MF Internal Research
Note: The sectors mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party. Past performance may or may not be sustained in future.
Disclaimer: This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable. The above should not be construed as an investment advise. Axis MF/AMC is not guaranteeing any returns on any investments.
While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.
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