Axis Mutual Fund launches scheme tracking Nifty500 Momentum 50 Index Fund

Scheme will follow passive strategy in 'momentum-driven stocks', says asset manager

Axis Mutual Fund has launched a new investment scheme that will track the Nifty500 Momentum 50 TRI and is open for subscription till February 7, 2025.

 

Axis Nifty500 Momentum 50 Index Fund reflects the growing interest among Indian investors in passive strategies, said the company in a press statement. It provides a “simplified and cost-effective solution” for investors seeking to capitalise on momentum-driven stocks.

 

The scheme aims to deliver returns, before expenses, that align with the Nifty500 Momentum 50 TRI, subject to tracking error. A feature of the Nifty500 Momentum 50 Index is its selection of stocks from large, mid, and smallcaps, removing the need for investors to implement separate momentum strategies based on market capitalisation, according to the statement.

 

The fund will allocate 95-100 per cent of its assets to stocks in the Nifty500 Momentum 50 Index, with up to 5 per cent reserved for debt and money market instruments to ensure liquidity.

 

“With the increasing popularity of low-cost, passive strategies, we believe this fund offers a unique opportunity to invest in India’s momentum-driven stocks while ensuring broad diversification,” said B Gopkumar, managing director and chief executive officer of Axis Mutual Fund.

 

The minimum investment amount is Rs 100, with subsequent investments in multiples of Re 1. An exit load of 0.25 per cent will be applicable if redeemed or switched out within 15 days from the date of allotment. There will be no exit load if redeemed or switched out after 15 days from the date of allotment.

 

Karthik Kumar and Sachin Relekar will manage the Axis Nifty500 Momentum 50 Index Fund.

Who should invest?

Axis Mutual Fund said the fund is for investors aiming to gain exposure to India's top-performing stocks and capitalise on market momentum. It is ideal for those seeking a passive investment strategy with diversification across large, mid, and smallcap companies, as well as for investors with a long-term investment horizon and moderate risk appetite.