If you’re planning to invest in mutual funds, there is some good news. Axis Mutual Fund has launched a new investment option called the Axis Nifty50 Equal Weight Index Fund.
The New Fund Offer (NFO) for this open-ended index scheme opened on July 3, 2026, giving investors a fresh opportunity to invest in India’s top companies through a different strategy.
The fund aims to provide long-term growth while reducing the heavy dependence on a few large companies that is often seen in traditional index funds.
How Is This Fund Different From the Regular Nifty 50?
In a standard Nifty 50 index fund, companies with a larger market capitalization receive a bigger share of the investment. This means that the performance of a few large companies can significantly impact the overall returns of the fund.
However, the Nifty50 Equal Weight Index Fund follows a different approach. It allocates an equal amount of money to all 50 companies in the Nifty 50 index, regardless of their size.
This helps create a more balanced portfolio and reduces the concentration risk associated with large-cap stocks.
The portfolio is also rebalanced every quarter to maintain equal allocation among all companies.
Minimum Investment Starts at Just ₹100
One of the biggest advantages of this fund is its affordability. Investors can start investing with just ₹100. After the initial investment, additional investments can be made in multiples of ₹1.
The fund is managed by Nandik Mallick and Rohit Gautam. According to historical data, equal-weight strategies have delivered average annual returns of around 13% to 15% over the long term, although returns are never guaranteed.
Why Are Equal Weight Funds Becoming Popular?
Investor interest in equal-weight funds has grown rapidly in recent years. Industry data shows that the total assets under management (AUM) in this category have increased from around ₹100 crore in 2019-20 to an estimated ₹10,000 crore by 2025-26.
Many investors prefer this strategy because it provides broader exposure across companies and has, at several points in the past, delivered better returns than the traditional Nifty 50 index while maintaining similar levels of risk.
What Did Axis Mutual Fund’s CEO Say?
Speaking about the launch, B Gopakumar, MD & CEO of Axis AMC, said that the new fund offers investors a balanced way to invest in India’s leading companies.
He added that passive investing is becoming increasingly popular among investors looking to diversify their portfolios, and the company expects the fund to deliver strong long-term value.
For investors looking for a diversified and low-cost way to participate in India’s equity market, the Axis Nifty50 Equal Weight Index Fund could be an option worth exploring.
However, as with all market-linked investments, it’s important to understand the risks before investing.
