Axis Mutual Fund has launched the Axis Nifty500 Low Volatility 50 Index Fund, an open-ended index fund tracking the Nifty500 Low Volatility 50 TRI, subject to tracking error. The NFO will open on September 9, 2026 and close on September 22, 2026, offering a passive, rules-based approach focused on stocks with relatively lower price fluctuations.
B. Gopkumar, MD & CEO, Axis AMC, said, “As participation in equity markets broadens, the conversation around risk is also evolving. For many investors, the challenge is having the conviction to stay invested when markets fluctuate. We believe investment solutions should increasingly recognise this behavioural dimension of investing.
“A strategy that can moderate the intensity of market movements can potentially make it easier for investors to remain focused on their long-term goals, rather than reacting to every phase of the market cycle. This is an important role that Low Volatility based passive strategies can play in a portfolio.
“Low volatility investing does not seek to outperform the market in every phase. Instead, it takes a more measured approach to equity exposure by focusing on stocks that have historically experienced lower price volatility. With the launch of this fund, the core objective is not to eliminate market volatility, but to participate in equity markets through a portfolio constructed around a risk reduction characteristic,” Gopkumar added.
Understanding the Nifty500 Low Volatility 50 Index
Historically, the Nifty500 Low Volatility 50 TRI has exhibited lower volatility than the Nifty 500 across multiple time periods. Over the 20-year period ended July 31, 2026, the index delivered a CAGR of 16.0%, compared with 13.0% for the Nifty 500 TRI, while annualised volatility was 15.6% versus 19.9% for the Nifty 500 TRI.
The strategy has also demonstrated relatively lower drawdowns during major market corrections. The lower drawdown during these periods meant that the strategy started its subsequent recovery from a relatively higher base.
The Nifty500 Low Volatility 50 Index starts with constituents of the Nifty 500 Index and applies liquidity eligibility criteria before calculating a low volatility score based on historical price behaviour.
The 50 stocks with the lowest volatility scores are selected for inclusion in the index. Stock weights are determined using the low volatility score and free-float market capitalisation, subject to prescribed caps. The index is rebalanced semi-annually in June and December.
Axis Nifty500 Low Volatility 50 Index Fund
The Axis Nifty500 Low Volatility 50 Index Fund is an open-ended index fund that seeks to replicate the performance of the Nifty500 Low Volatility 50 TRI, subject to tracking error. The fund provides exposure to a portfolio of 50 stocks selected from the Nifty 500 universe based on a transparent, rules-based methodology.
The index is designed to include stocks that have exhibited relatively lower price volatility over time, while maintaining diversification across sectors and market capitalisations. The portfolio is reconstituted and rebalanced periodically (every 6 months) in line with the index methodology, enabling investors to gain access to a disciplined factor-based investment approach through a passive fund structure.
The fund combines the simplicity and transparency of passive investing with a rules-based low-volatility factor approach, making it a suitable option for investors seeking broad market participation through a portfolio of relatively stable companies. It can serve as a core allocation for investors looking for a disciplined, long-term equity solution or as a complement to existing market-cap-based index exposures.
