NFO Alert: Axis Mutual Fund Unveils Nifty500 Quality 50 Index Fund

Axis Mutual Fund has announced the launch of the Axis Nifty500 Quality 50 Index Fund, an open-ended index scheme that mirrors the Nifty500 Quality 50 Total Return Index (TRI). The New Fund Offer (NFO) will open on August 21, 2025, and close on September 4, 2025.

The scheme will be managed by Karthik Kumar and Hitesh Das. It will follow a passive investment approach, tracking the performance of the Nifty500 Quality 50 TRI, subject to tracking error.

Index Selection Method

The Nifty500 Quality 50 Index selects 50 companies from the broader Nifty 500 universe. The selection is based on three factors: return on equity, financial leverage, and earnings growth stability. The process follows a set methodology without discretionary intervention.

Constituents are spread across large, mid, and small-cap segments and multiple sectors. To avoid concentration risk, the index applies a stock weight cap. The portfolio is rebalanced twice a year.

Read more: NFO Alert: Angel One Gold ETF Opens on 20th August 2025!

Minimum Investment

The minimum investment during the NFO period is ₹100, with additional amounts accepted in multiples of ₹1. The fund is designed as a low-cost, index-tracking product.

As per news reports, the Nifty500 Quality 50 Index has delivered a 15.6% CAGR over the 15 years ending July 2025, compared with 12.1% for the Nifty 50. It has also recorded lower volatility levels in the long term.

Conclusion

The Axis Nifty500 Quality 50 Index Fund provides exposure to companies with a consistent track record of financial strength and earnings stability. By aligning with a transparent, rules-based index, the scheme offers investors a way to participate in the equity market with defined selection criteria.

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.