Axis Mutual Fund has introduced the Axis Nifty India Defence Index Fund, an open-ended scheme designed to track the Nifty India Defence Total Return Index.
The NFO will be available from April 10 to April 24, 2026. The fund aims to provide returns, before expenses, that closely correspond to the index performance, subject to tracking error.
The fund provides a low-cost, transparent and systematic route for investors to participate in defence sector growth, driven by global and domestic tailwinds.
Global defence spending has surpassed USD 2.7 trillion, while India’s defence budget has expanded to ₹6.8 lakh crore in FY26, nearly 2.7 times its FY14 level. Domestic production has doubled over five years, with further growth targeted by 2029. Exports have increased significantly from ₹2,000 crore to over ₹23,000 crore.
The index includes companies involved in aerospace and defence equipment, shipbuilding, explosives, and allied services. It is weighted by free-float market capitalisation and rebalanced semi-annually.
Managed by Nandik Mallik and Rohit Gautam, the fund follows a passive investment approach, eliminating fund manager bias while offering diversification within the defence theme.
Commenting on the launch, B. Gopkumar, MD & CEO, Axis AMC, said,
“India’s defence sector is undergoing a multi-year transformation, supported by rising budgets, strong policy intent, and expanding export opportunities. Through the Axis Nifty India Defence Index Fund, we are offering investors a low-cost, rules-based way to participate in this structural growth theme. This fund is well-suited for investors with a long-term perspective who are looking to align their portfolios with India’s strategic and manufacturing priorities.”
The fund house noted that investors should expect higher volatility in the short to medium term and consider the fund as a long-term allocation, preferably via systematic investment plans.
