Upcoming NFO: Axis Mutual Fund Files Draft for Nifty Capital Markets Index Fund

Axis Mutual Fund has filed draft documents for the Axis Nifty Capital Markets Index Fund, an open-ended index scheme to mirror the Nifty Capital Markets Total Return Index.  

The scheme intends to track the index before expenses, with the filing noting that returns may differ due to tracking error. Units will reopen for transactions within 5 business days of allotment once the New Fund Offer is completed. 

Portfolio Framework 

The draft states that 95-100% of assets will be placed in securities that are part of the Nifty Capital Markets Index. Up to 5% may be held in money-market instruments, liquid schemes or debt funds for liquidity.  

Derivative exposure linked to index constituents may be used temporarily and is capped at 15% of net assets. Stock lending is permitted, limited to 20% of the portfolio, and 5% per counterparty. The fund will not invest in overseas securities, REITs, InvITs or securitised debt. 

Offer Details 

During the NFO, units will be offered at ₹10 each with a minimum subscription of ₹100. The scheme carries no entry load. An exit load of 0.25% applies if units are redeemed within 15 days; after this period, there is no charge.  

The total expense ratio for an index fund of this category cannot exceed 1% of daily net assets under SEBI rules. NAVs are to be disclosed by 11 p.m. on business days. 

Benchmark and Rebalancing 

The benchmark is the Nifty Capital Markets TRI, which undergoes semi-annual reviews. The scheme is required to adjust its holdings within 7 calendar days of any change in index constituents.  

The document also notes that temporary deviations may occur during corporate actions, subscriptions, or redemptions. 

The draft lists Karthik Kumar as the designated fund manager. The filing confirms compliance with SEBI regulations for new schemes and includes standard disclosures. As the scheme has not yet launched, there is no performance history. 

Read More: Best Thematic Mutual Funds in India for December 2025: SBI PSU Fund, ICICI Pru PSU Equity Fund and More ! 

Conclusion 

The draft outlines the operational rules, investment limits and index-tracking framework for the proposed fund, setting out how it would function once opened to investors. 

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.