Invest in passive funds with Axis NIFTY50 Index Fund

Passive funds are ideal for investors who are looking for a cost effective way to invest in mutual fund schemes. For those who aren’t aware, mutual funds can be largely categorized as actively managed and passively managed schemes. Most people are aware of active funds and how they work. Active funds have dedicated portfolio managers who actively make investment decisions and decide which stocks to consider to build a rewarding portfolio. But in the case of passive funds, they are constantly tracking the market index and trying to generate similar returns while keeping tracking errors to a minimum. While active funds constantly try to outperform their underlying benchmark and generate high returns, index funds are designed to generate returns similar to that of the index they are tracking.

Index funds are such passive mutual funds that invest the majority of their investible corpus in the underlying securities that comprise the benchmark in the same proportion without changing the portfolio composition. The performance of an index fund entirely depends on how the underlying securities that comprise the benchmark perform across changing market cycles.

Index fund managers ensure that the portfolio composition of the fund remains similar to that of the index. If there is rejigging of stocks in the index, the fund manager ensures that these changes are made in the index fund portfolio as well to minimize tracking error.

An index fund may track any popular indices like the NIFTY 50, SENSEX 30, etc. Since they follow a passive investment style, index funds are known to have a relatively low expense ratio. This is what makes index funds a cost effective investment choice. Investors can either make a lump-sum investment in index funds or they can even opt for the Systematic Investment Plan (SIP). Unlike other passive funds like ETFs that need a DEMAT account to invest, one does not need a DEMAT account to invest in index funds. Investors can use their regular mutual fund account to make an investment in index mutual funds. Those who opt to take the SIP route do not have to worry about market fluctuations as they invest small sums periodically across market cycles.


An open-ended Index Fund tracking the NIFTY 50 Index

Investment objective
To provide returns before expenses that closely corresponds to the total returns of the NIFTY 50 subject to tracking errors. However, there can be no assurance that the investment objective of the scheme will be achieved.

The scheme offers units for subscription and redemption at NAV based prices on all business days on an ongoing basis commencing not later than five business days from the date of allotment. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of request from the unit holder.

Nifty 50 Index TRI

Minimum Application Amount
Rs 5,000 and in multiples of Re 1/- thereafter

Minimum Additional Purchase Amount –
Rs 1,000 and in multiples of Re 1/- thereafter
Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan.

Plans and Options under the Scheme Plans
Axis Nifty 50 Index Fund – Regular Plan

Axis Nifty 50 Index Fund – Direct Plan

Options under each Plan

  • Growth
  • Income Distribution cum Capital Withdrawal (IDCW) (Payout and Re-investment Facility)

Regular Plan
Regular Plan is available for investors who purchase /subscribe units in a scheme through a distributor.

Direct Plan
Direct Plan is only for investors who purchase/ subscribe units in a scheme directly with the fund and is not available for investors who route their investments through a distributor.

Eligible investors / modes for applying
All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the scheme are eligible to subscribe under direct plan. Investments under direct plan can be made through various modes offered by the fund for investing directly with the fund {except platform(s) where investors’ applications for subscription of units are routed through distributors}. All the plans will have a common portfolio.

Load Structure
Entry Load: Not Applicable
Exit Load: Nil


An open-ended Index Fund tracking the NIFTY 50 Index

Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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