Axis Mutual Fund launches Axis Nifty500 Low Volatility 50 Index Fund

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.