Axis Mutual Fund has announced the launch of Axis Nifty India Defence Index Fund, an open-ended passive equity scheme. The new fund offer will open for subscription on April 10, 2026, and close on April 24, 2026.
The scheme will track the Nifty India Defence Total Return Index, comprising companies linked to defence activities. The launch aligns with rising domestic and global focus on the defence sector.
The Axis Nifty India Defence Index Fund is structured as an open-ended index fund following a passive investment approach. It aims to generate returns, before expenses, that closely correspond to the performance of the Nifty India Defence TRI, subject to tracking error.
The fund will replicate the index portfolio by investing in the same securities and proportions as the benchmark. The scheme is benchmarked directly to the Nifty India Defence Total Return Index.
The NFO will be available for subscription from April 10, 2026, to April 24, 2026. The minimum application amount has been fixed at ₹100, with additional investments allowed in multiples of ₹1.
An exit load of 0.25% will be charged if units are redeemed or switched out within 15 days from the date of allotment. No exit load will apply on redemptions made after this period.
The scheme will be managed by Nandik Mallik and Rohit Gautam, as per the fund documentation. The underlying index follows a free-float market capitalisation weighted methodology with prescribed caps to limit concentration.
The index is rebalanced on a semi-annual basis to account for changes in market capitalisation and revenue exposure. Eligible companies derive a significant portion of their revenues from defence-related activities.
The Nifty India Defence Index includes companies operating across aerospace and defence equipment, shipbuilding, explosives, and allied services. The launch comes at a time when global defence expenditure crossed an estimated $2.7 trillion in 2024, driven by geopolitical developments.
In India, defence allocation has risen to about ₹6.8 lakh crore in FY26, nearly 2.7 times the level in FY14. Domestic defence production has nearly doubled over the last 5 years, supported by policy initiatives.
Read More: Mutual Fund Industry Sees 21% Growth in AUM, Reaching ₹81.50 Lakh Crore in March 2026.
Axis Mutual Fund’s new index fund offers benchmark-linked exposure to India’s defence sector through a passive structure. The scheme is aligned with long-term trends in defence spending and domestic manufacturing expansion.
Rising exports, which increased from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25, highlight sector momentum. The fund’s design, costs, and index methodology have been clearly outlined ahead of the NFO.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 9, 2026, 2:16 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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