Axis Mutual Fund Withdraws NFO of Axis Nifty500 Momentum 50 ETF

Axis Mutual Fund has officially withdrawn the New Fund Offer (NFO) for the Axis Nifty500 Momentum 50 ETF, which was initially scheduled to be launched on March 13, 2025 and close on March 18, 2025. The announcement was made on 12 March 2025 via a notice issued by Axis Asset Management Company.

This ETF was designed to replicate or track the Nifty500 Momentum 50 Total Returns Index (TRI), an index that identifies stocks demonstrating strong momentum in the market.

No Official Reason Provided for the Withdrawal

While the decision to withdraw the NFO was made public, Axis Mutual Fund has not disclosed any specific reasons for this move. The fund house has also not indicated whether the scheme will be relaunched at a later date.

In such instances, fund houses may reassess their product offerings based on market conditions, regulatory considerations, or internal strategic decisions.

Implications for Momentum-Based ETF Investors

With this NFO no longer available, investors interested in momentum-based ETFs may need to explore other options in the market. The Nifty500 Momentum 50 TRI index tracks stocks with high relative momentum, making it a sought-after category for certain investment strategies.

Existing ETFs that follow momentum-based indices may offer alternatives, though the availability of a direct substitute remains uncertain.

Conclusion

It remains to be seen whether Axis Mutual Fund will reintroduce the NFO in the future or launch a similar scheme. Investors may keep an eye on further announcements from the fund house for any updates regarding the status of the Axis Nifty500 Momentum 50 ETF.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.