NFO Alert: Axis Mutual Fund Launches Nifty500 Momentum 50 ETF

Axis Mutual Fund has introduced the Axis Nifty500 Momentum 50 ETF, an open-ended exchange-traded fund (ETF) that tracks the Nifty500 Momentum 50 Total Return Index (TRI). The New Fund Offer (NFO) will be available from March 13, 2025, to March 18, 2025.

Fund Details

The New Fund Offer (NFO) details are as follows:

• Fund House: Axis Mutual Fund
• Benchmark: NIFTY500 Momentum 50 TRI
• Category: Equity – Flexi Cap
• Type: Open-ended
• Registrar & Transfer Agent: KFin Technologies Ltd.
• Risk Level: Very High (as per the Riskometer)
• Exit Load: Nil

Investment Details

The ETF follows a passive investment strategy, replicating the Nifty500 Momentum 50 TRI index. The index consists of 50 stocks from the Nifty 500, selected based on their momentum scores, which measure price trends.

Investors can participate in the NFO with a minimum investment of ₹500, with additional investments allowed in multiples of ₹1. There is no lock-in period, and the exit load is nil.

Trading and Liquidity

After the NFO period, the fund will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This will allow investors to buy and sell ETF units during market hours at real-time prices. The fund may also invest in debt and money market instruments to meet liquidity and operational needs.

Fund Management

The ETF will be managed by Karthik Kumar. The portfolio composition will align with the benchmark index, subject to tracking error, which is the difference between the fund’s returns and the index returns.

Conclusion

The Axis Nifty500 Momentum 50 ETF will provide investors with an option to invest in momentum-based stocks through an exchange-traded format. The fund will follow a predefined methodology for stock selection and will be passively managed to match the performance of the Nifty500 Momentum 50 TRI index.

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. 

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