Axis Mutual Fund Launches Nifty500 Low Volatility 50 Index Fund, NFO Opens Sept 9

Axis Mutual Fund has announced the launch of the Axis Nifty500 Low Volatility 50 Index Fund, an open-ended index fund that will track the Nifty500 Low Volatility 50 TRI, subject to tracking error.

The new fund offer (NFO) will open on September 9 and close on September 22. The minimum application amount is ₹100 and in multiples of ₹1 thereafter.

The fund will be managed by Nandik Mallik and Rohit Gautam. An exit load of 0.25% will apply if units are redeemed or switched out within 15 days from the date of allotment. No exit load will be charged after 15 days.

The Nifty500 Low Volatility 50 index comprises 50 stocks selected from the Nifty 500 universe based on their historical price volatility. The index first applies liquidity criteria and then assigns stocks a low-volatility score based on their past price movements.

The 50 stocks with the lowest volatility scores are included in the index. Their weights are determined using the low-volatility score and free-float market capitalisation, subject to prescribed limits. The index is rebalanced twice a year, in June and December.

According to data cited by Axis Mutual Fund, the Nifty500 Low Volatility 50 TRI delivered a compound annual growth rate (CAGR) of 16% over the 20 years ended July 31, 2026, compared with 13% for the Nifty 500 TRI. Its annualised volatility during the period was 15.6%, against 19.9% for the Nifty 500 TRI.

The fund will provide exposure to the 50 stocks in the index through a passive, rules-based approach. As with other equity-oriented index funds, returns will depend on the performance of the underlying index and may differ from it because of tracking error.