Axis Mutual Fund's new Nifty500 Quality 50 Index Fund: All you need to know

Axis Mutual Fund has announced the launch of the Axis Nifty500 Quality 50 Index Fund, an open-ended Index Fund tracking the Nifty500 Quality 50 TRI. The Axis Nifty500 Quality 50 Index Fund is designed to provide investors with a simple, transparent and cost-efficient route to invest in fifty of India’s high quality companies, selected from the Nifty 500 universe. The underlying Nifty500 Quality 50 Index selects its constituents based on parameters such as high return on equity, low financial leverage and stable earnings growth, with a disciplined, rules-based methodology that removes human bias from the stock selection process.

The New Fund Offer (NFO) will open for subscription from 21 Aug 2025 to 4 Sep 2025.

Speaking on the launch, B Gopkumar, MD & CEO, Axis AMC, said, “Quality is a time-tested investment factor that has shown not only resilience during uncertain market phases but also the ability to capture upside in growth cycles. With the Axis Nifty500 Quality 50 Index Fund, we are providing investors a disciplined, low-cost and transparent way to gain exposure to India’s strong companies—those that are well positioned to deliver relatively consistent performance over the long term.”

Key Attributes of Axis Nifty500 Quality 50 Index Fund

The Axis Nifty500 Quality 50 Index Fund is characterised by its focus on high-quality companies selected from the broader Nifty 500 universe using a disciplined, rules-based methodology. The fund emphasizes companies with strong fundamentals, specifically those exhibiting high return on equity, low financial leverage, and stable earnings growth over the past five years. Further, the fund offers diversified exposure across large, mid, and small caps as well as multiple sectors, mitigating concentration risk.

With a low-cost, transparent, and systematic investment approach, the fund aims to provide long-term wealth creation with lower volatility compared to broader market indices. It is rebalanced semi-annually and maintains a maximum stock weight cap to ensure balanced representation. The minimum investment during the NFO is Rs 100, making it accessible for a wide range of investors.

Ashish Gupta, CIO, Axis AMC said, “Quality companies often combine strong earnings potential with robust balance sheets and sustainable competitive advantages. Companies in this index are selected based on their return on equity (ROE), financial leverage (Debt/Equity Ratio) and earnings (EPS) growth variability By investing in such businesses across different sectors and market caps, this fund offers investors a portfolio that can weather downturns and participate meaningfully during periods of growth. This approach is especially well suited for investors looking to build a core equity allocation with a focus on stability and long-term returns.”