Archive · 8 Sep 2026
Axis MF launches low-volatility Nifty 500 index fund
Axis Mutual Fund is launching a new fund that invests in 50 stocks that have usually moved less sharply than other stocks.
These stocks are chosen from the Nifty 500 using a set of rules.
The list is checked and changed twice each year.
Investors can apply with as little as ₹100 during the new-fund-offer period.
The fund charges a 0.25% exit fee if investors leave within 15 days.
It does not charge that fee after 15 days.
Historical data showed lower ups and downs and higher returns than the broader Nifty 500 over the stated 20-year period.
However, the fund can still lose money when the stock market falls.
Past results do not guarantee future performance.
Axis Mutual Fund’s open-ended fund will track the Nifty500 Low Volatility 50 TRI.
The index selects 50 relatively low-volatility stocks from the Nifty 500 after liquidity screening.
The new-fund-offer period runs from September 9 to 22, 2026, with a minimum investment of ₹100.
The fund will be managed by Nandik Mallik and Rohit Gautam and rebalanced every June and December.
The strategy reported a 16% 20-year CAGR and 15.6% annualised volatility, compared with 13% and 19.9% for the Nifty 500 TRI.
- Who
- Axis Mutual Fund, with fund managers Nandik Mallik and Rohit Gautam.
- What
- The launch of the Axis Nifty500 Low Volatility 50 Index Fund, an open-ended index fund.
- When
- The new-fund-offer period is September 9–22, 2026; the underlying index is rebalanced in June and December.
- Where
- The fund invests in stocks from the Nifty 500.
- Why
- To offer equity-market exposure through a rules-based portfolio focused on stocks with historically lower price volatility.
Potential benefits
Risks and limitations
Portfolio volatility
Potential benefits
The strategy is designed to reduce the intensity of portfolio fluctuations by selecting stocks with relatively lower historical volatility.
Risks and limitations
Low-volatility investing does not eliminate equity-market risk, and the fund can still lose money during market declines.
Historical performance
Potential benefits
The Nifty500 Low Volatility 50 TRI delivered a reported 16% CAGR with 15.6% annualised volatility over the stated 20-year period, compared with 13% and 19.9% for the Nifty 500 TRI.
Risks and limitations
The reported results are historical, and past performance does not guarantee future returns or outperformance in every market phase.
Portfolio role
Potential benefits
The fund may provide a complementary low-volatility factor allocation for investors who already own broad Nifty 50 or Nifty 500 funds.
Risks and limitations
Its suitability depends on an investor’s risk profile, investment horizon and existing holdings, and it is not intended to time the market or identify individual stocks.
- Fund type
- Open-ended index fund
- Underlying index
- Nifty500 Low Volatility 50 TRI
- Minimum investment
- ₹100, with investments in multiples of ₹1 thereafter
- Exit load
- 0.25% for redemption or switching within 15 days; nil thereafter
- Fund managers
- Nandik Mallik and Rohit Gautam
- Historical comparison
- For the stated 20-year period ended July 31, 2026, the index recorded a 16.0% CAGR and 15.6% annualised volatility, versus 13.0% and 19.9% for the Nifty 500 TRI
- Rebalancing
- Twice a year, in June and December