NFO Alert: Axis Mutual Fund Introduces BSE India Sector Leaders Index Fund

Axis Mutual Fund has launched the Axis BSE India Sector Leaders Index Fund, an open-ended index scheme tracking the BSE India Sector Leaders Total Return Index (TRI).  

The new fund offer (NFO) will open on January 23, and close on February 6, 2026. The scheme will be managed by Karthik Kumar, with a minimum subscription amount of ₹100. 

Index Composition and Selection Method 

The underlying index draws stocks from the BSE 500 Index and selects the top three companies from each of 21 sectors, based on average 6-month daily total market capitalisation.  

This selection method results in a portfolio of companies identified as leaders within their respective sectors across the Indian equity market. 

Weighting and Rebalancing Framework 

The index methodology applies a minimum stock weight of 1% and a maximum of 5%, with weights reset on a quarterly basis.  

The index is reconstituted semi-annually, allowing for changes in sector composition and company rankings to be incorporated into the portfolio over time. 

Sector and Market-Cap Exposure 

The scheme provides exposure to sectors such as financial services, information technology, industrials, commodities, FMCG and healthcare.  

It includes large-, mid- and small-cap stocks, offering representation across different segments of the market. The fund will invest in all constituents of the index to mirror its performance. 

Fund Approach and Positioning 

The fund follows a rules-based passive strategy, with no active stock selection. According to the fund house, the structure is intended to provide diversified sector exposure while limiting concentration through defined weight caps and periodic rebalancing. 

Read More: NFO Alert: WhiteOak Capital Mutual Fund Launches Consumption Opportunities Fund! 

Conclusion 

The Axis BSE India Sector Leaders Index Fund expands the range of passive options available to investors. By tracking sector leaders within the BSE 500 universe and applying fixed weighting and reconstitution rules, the scheme offers a structured way to gain diversified exposure across Indian equity sectors over the long term. 

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.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.