Access India?s growth through Axis Nifty 500 Index Fund NFO!

India's economic landscape is a captivating narrative of rapid growth and immense potential. As an investor, capturing a piece of this exciting story can be a strategic move. While there are various options available, only a few may know about the Nifty 500 index. As the name suggests, the Nifty 500 covers the top 500 companies in terms of market capitalization.

The Nifty 500 serves as a benchmark index, representing the performance of the top 500 companies listed on the National Stock Exchange of India (NSE) based on market capitalization and liquidity. These companies encompass a diverse range of sectors, reflecting the broad health of the Indian economy.

Investors can gain exposure to the Nifty 500 universe of listed companies by investing in Nifty 500 index funds. These are passive funds that invest in the companies that are part of the index and try to mirror the performance of the index.
Let’s look at some of the reasons why investors can consider investing in Axis Nifty 500 Index Fund NFO and participate in India’s growth:

Follow India’s Growth Story
India has crossed $5 trillion by market cap and is the 5th largest economy in the world only behind the after the US, China, Japan, and Hong Kong; the fourth trillion took mere 2.5 years.
World market capitalization in US$ trillion

Data as on 31st May, 2024
Source: Bloomberg, BSE, Jefferies

Data as on 31st May, 2024
Source: Bloomberg, BSE, Jefferies

When you invest in a Nifty 500 index fund, you’re investing in the largest 500 companies in India in terms of market capitalization.

These 500 companies are a significant driver of growth in the Indian economy. When the Indian economy does well, these companies are likely to do well, and vice versa. The performance of these companies is linked with the performance of the Indian economy. Hence, investors can gain exposure to a very large market by investing in this single fund.

Covers Most of the Listed Companies in India

As mentioned earlier, the Nifty 500 index tracks the performance of the 500 largest companies in India in terms of market capitalization. This translates to covering ~90% of the total free float market capitalization that is part of the National Stock Exchange (NSE).

Source: FactSet, Axis MF Research. *Percentage Market Cap of Index to Total Market Cap of NSE listed equity shares, based on 6 months ended March 28, 2024. ^Weight for 2024 is as of last trading day of Mar-2024. Weights are calculated based on Free-Float Market Cap.

Past performance may or may not be sustained in the future. Sectors/Attributes(s) mentioned above are for the purpose of illustration and should not be construed as recommendation

Essentially, the Nifty 500 covers a very large portion of the listed company universe of India.

Investors who want to mirror the performance of the Indian listed companies’ market as a whole can invest in this index as a close substitute. Nifty 500 index funds are a simple and convenient way for investors to gain exposure to most of the listed companies in India.

Provides Diversification
The Nifty 500 consists of companies that are a part of 21 sectors. So, when an investor invests in a Nifty 500 index fund, they gain highly diversified exposure to 21 sectors.

Source: niftyindices.com, NSE, Index Axis MF Research.
Data as of March 28, 2024 as per Nifty Indices while paper on Nifty 500
Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation.

Investors don’t just gain sector-level diversification, they gain stock-level diversification as well. The index covers stocks from various types of market caps as well consisting of large-cap, mid-cap, and small-cap stocks as well.
This high level of diversification can be a good choice for investors who are looking for a single low-cost fund that provides balanced exposure to the market.

Risk-Adjusted Returns
By design, Nifty 500 Index Funds spread your investment across 500 companies. This diversification inherently reduces the risk associated with any single company's performance. While the market itself can be volatile, diversification may help mitigate some of that risk.

Wrapping Up
India's economic journey is an exciting one, and Axis Nifty 500 Index Funds can offer a gateway to participate in its success. Investors can choose to invest in an index fund that tracks the Nifty 500 which is a single fund that largely mirrors India’s growth. By understanding the benefits, choosing the right fund, and incorporating it into a well-defined investment strategy, investors can position themselves to benefit from India's flourishing economy.

Scheme Details

Disclaimers

Past performance may or may not be sustained in the future.

Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation.

NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the SIDs / Schemes of Axis MF has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the SIDs. The investors are advised to refer to the SIDs for the full text of the 'Disclaimer Clause of NSE.

Axis Nifty 500 Index Fund is not sponsored, endorsed, sold or promoted by NSE Indices Limited (formerly known as India Index Services & Products Limited (IISL)). NSE Indices Limited does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of Axis Nifty 500 Index Fund or any member of the public regarding the advisability of investing in securities generally or in the Axis Nifty 500 Index Fund linked to Nifty 500 TRI or particularly in the ability of the Nifty 500 TRI to track general stock market performance in India. Please read the full Disclaimers in relation to the Nifty 500 TRI in the in the Offer Document/ Prospectus/ Scheme Information Document.

The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs.1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.