The new fund offer (NFO) opened on July 3 and will close on July 17. The minimum investment amount is ₹100.
Unlike a standard Nifty 50 index fund, where larger companies account for a bigger share of the portfolio, the equal-weight strategy invests equally across all constituents and rebalances the portfolio periodically to restore equal allocation.
The structure reduces the dominance of large-cap stocks in the portfolio and increases exposure to relatively smaller companies within the index.
According to the fund house, the portfolio will be rebalanced quarterly.
B Gopkumar, Managing Director and CEO of Axis AMC, said the launch is aimed at expanding the company’s passive investment offerings.
Equal-weight index strategies have gained traction in India in recent years as investors look for alternatives to market-cap-weighted indices, which can become concentrated in a small number of large stocks.
Axis Mutual Fund cited industry data showing assets linked to equal-weight strategies have grown significantly over the past several years, although the company did not independently verify the figures.
The fund house also said the Nifty50 Equal Weight Total Returns Index (TRI) has historically outperformed the standard Nifty 50 TRI across certain periods, though past performance does not guarantee future returns.
The scheme will be managed by Nandik Mallik and Rohit Gautam. It is structured as an open-ended index fund, allowing subscriptions and redemptions after the NFO period.
The scheme carries an exit load of 0.25% if redeemed within 15 days from the date of allotment. No exit load will apply after that period.
Also read: Consumption, large-cap financials offer better risk-reward than midcaps: Axis Mutual Fund
The launch adds to a growing range of strategy-based passive funds in India that track benchmark indices using alternative weighting approaches rather than traditional market-cap weighting.
