NFO Alert: Axis Mutual Fund to Launch Nifty500 Momentum 50 Index Fund

Axis Mutual Fund is launching the Axis Nifty500 Momentum 50 Index Fund, an open-ended index fund tracking the Nifty500 Momentum 50 TRI. The New Fund Offer (NFO) will be open from January 24, 2025, to February 7, 2025, and will re-open for continuous subscriptions within five business days after allotment.

Investment Objective

The scheme will provide returns that correspond to the Nifty500 Momentum 50 TRI before expenses, subject to tracking errors. The portfolio will replicate the index by investing in the same stocks and weightings as the index.

In terms of asset allocation, the fund will allocate 95-100% of its assets to stocks in the Nifty500 Momentum 50 Index and up to 5% in debt and money market instruments for liquidity purposes.

Minimum Investment and Charges

The minimum investment amount is ₹100, with additional investments in multiples of ₹1. The scheme has an exit load of 0.25% for redemptions within 15 days, with no charges for redemptions after this period. Recurring expenses are capped at 1% of the scheme’s daily net assets.

Fund Management

The fund will be managed by Karthik Kumar and Sachin Relekar. Karthik Kumar has experience at SilverTree Hong Kong and Asiya Investment, while Sachin Relekar has worked with Bandhan Mutual Fund, LIC Mutual Fund, and other institutions.

Risk Profile and Benchmark

The scheme is categorised as very high risk. Its benchmark is the Nifty500 Momentum 50 TRI, which includes stocks selected based on momentum factors within the Nifty500 universe.

This fund follows a passive investment strategy and will rebalance its portfolio within seven days of any changes in the underlying index. It will not invest in overseas securities or derivatives beyond the constituents of the underlying index. 

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.