Why Invest in Axis Nifty500 Value 50 Index Fund?

Investing in passive funds has been gaining popularity in India over the past few years. Passive funds now represent around 17% of the total assets under management (AUM) of the Indian mutual fund industry.

There can be several reasons to invest in a passive fund such as high levels of diversification and greater transparency. Moreover, passive index funds offer easy access to the broader market at low costs. There are various unique investment opportunities available for investors that spans across, total market, large, mid, small caps, sectors, themes, and most recently factors.

Here is one fund you may consider:

Axis Nifty500 Value 50 Index Fund
Axis Nifty 500 Value 50 Index Fund is a new passive fund being offered by Axis Mutual Fund. The aim of this fund is to seek capital appreciation by investing the constituents of Nifty500 Value 50 Index. This index comprises 50 value-oriented stocks. The fund is being offered as an index fund and is an open-ended fund.

What is the Benchmark?
The benchmark of the fund is Nifty500 Value 50 TRI. This index has a long-standing track record, having appreciated at a CAGR of 17.2% between September 2005 and September 2024. Meanwhile, the Nifty 500 TRI witnessed gains of 14.5% per year during the same period.

How are Stocks Selected?
The eligible stocks in the index are picked from the universe of the Nifty 500 index. Thereby can offer exposure to large, mid and small caps.

The value score of all the eligible stocks is calculated based on the Price to Earnings (P/E), Price to Book (P/B), Price to Sales (P/S) and dividend yield metrics. The top 50 stocks with the highest value score form part of the index.

What is the Weightage?
The weightage of each stock in the index is decided by the free-float market capitalization and the value score.

There will be a sector weight cap of 25%, which means that no single sector will have a total weightage of 25% in the index.

Further, there will be a stock weight cap of 5%, which means that no single stock will have a weightage of more than 5%.

When is the Portfolio Rebalanced?
The portfolio will be rebalanced every six months in June and December. This is aimed to ensure that the ongoing portfolio is aligned to the objective of the index.

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https://www.businesstoday.in/mutual-funds/story/passive-funds-getting-popular-with-investors-touch-rs-102-lakh-crore-in-june-2024-report-443591-2024-08-29
https://www.niftyindices.com/indices/equity/strategy-indices/nifty500-value-50

Who is it ideal for?
Axis Nifty500 Value 50 Index Fund is ideal for investors who are not only looking for a passive investment avenue but also want access to value investing. This index fund provides a way for investors to gain exposure to a basket of 50 value stocks that have been picked by an unbiased value-based methodology.

Why invest in Axis Nifty500 Value 50 Index Fund now?
Value is one of the oldest and most widely used factors in investing. Value investing has proven itself to work across asset classes and markets. This index has outperformed the Nifty 500 in 10 of the last 19 calendar years. Investors who invest in this index fund now may benefit from potential long-term capital appreciation based on value investing principles.

Add ‘Value’ to your portfolio by investing in the Axis Nifty500 Value 50 Index Fund.

The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.

Past performance may or may not be sustained in future.

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.

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.

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

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https://www.niftyindices.com/indices/equity/strategy-indices/nifty500-value-50