(An open‑ended index fund
tracking the Nifty India Defence TRI)
The
fund aims to capture India’s structural defence growth opportunities
Mumbai
:
Axis Mutual Fund, one of India’s leading asset management companies, launches
its new fund offering – Axis Nifty India Defence Index Fund – an
open-ended Index Fund that invests in the constituents of Nifty India Defence
TRI. The NFO will open for subscription on 10th
April, 2026 and close on 24th April, 2026. The
Axis Nifty India Defence Index Fund aims to provide returns, before expenses,
that closely correspond to the performance of the Nifty India Defence Total
Return Index (TRI), subject to tracking error. The fund offers investors a low-cost
solution that is systematic and transparent way to participate in the long‑term
structural opportunity emerging from rising global defence spending, India’s
accelerating defence modernisation, and the government’s strong push toward
domestic manufacturing and exports.
Why
the Defence Sector?
Globally,
defence spending has been on a sustained rise, crossing USD 2.7 trillion in
2024, driven by increasing geopolitical tensions, regional conflicts, and
the transition towards a multipolar world order. This structural shift has led
to heightened and sustained investments in military capabilities across
developed and emerging economies. India is also participating meaningfully in
these trends, supported by higher budgetary allocations for the modernisation
of defence capabilities, policy reforms that encourage greater private‑sector
participation, enhanced foreign direct investment limits, and a strong emphasis
on expanding defence exports.
India’s
defence budget has grown nearly 2.7 times since FY14, reaching approximately
₹6.8 lakh crore in FY26, underscoring the government’s long‑term
commitment to strengthening defence capabilities. At the same time, domestic
defence production has nearly doubled over the past five years, with official
targets to double again by 2029. Defence exports have also scaled rapidly,
rising from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25,
reflecting increasing global acceptance of Indian defence platforms and
systems.
Axis
Nifty India Defence Index Fund
The
Axis Nifty India Defence Index Fund by replicating the underlying index, aims
to track a focused basket of companies that derive a meaningful portion of
their revenues from defence‑related
activities. The underlying index includes companies engaged in aerospace and
defence equipment, shipbuilding, explosives, and allied services, selected
through defined eligibility criteria and weighted by free‑float market capitalisation
with appropriate caps. The index is rebalanced semi‑annually, ensuring
discipline and transparency.
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.”
Key
attributes of the fund:
India’s
defence sector is witnessing a structural upcycle, driven by rising domestic
defence spending, a strong policy push under Atmanirbhar Bharat, and
accelerating defence exports from a lower base. The global shift towards a
multipolar world order is further supporting sustained defence expenditure,
creating long‑term
opportunities for Indian defence companies even as recent market corrections
have made valuations relatively more attractive.
The
fund will be managed by Nandik Mallik and Rohit Gautam, and
follows a passive investment approach, eliminating fund‑manager bias while
offering diversification across leading defence‑focused companies. Given the
thematic nature of the sector, investors should expect higher volatility in the
short to medium term and are encouraged to consider this fund as a long‑term
allocation, preferably through systematic investment plans.