Axis Mutual Fund has announced the launch of its new fund offering – Axis Nifty India Defence Index Fund – an open-ended index fund tracking the Nifty India Defence Total Return Index.
The New Fund Offer (NFO) will open for subscription on April 10, 2026, and close on April 24, 2026. The fund aims to provide returns, before expenses, that closely correspond to the performance of the underlying index, subject to tracking error.
The fund offers a low-cost, systematic and transparent way to participate in long-term structural opportunities emerging from rising global defence spending, India’s accelerating defence modernisation, and the government’s push toward domestic manufacturing and exports.
Globally, defence spending has crossed USD 2.7 trillion in 2024, driven by geopolitical tensions, regional conflicts, and a shift towards a multipolar world order.
India’s defence budget has grown nearly 2.7 times since FY14, reaching approximately ₹6.8 lakh crore in FY26. Domestic defence production has nearly doubled over the past five years, with official targets to double again by 2029. Defence exports have risen from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25.
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 caps. The index is rebalanced semi-annually.
The fund will be managed by Nandik Mallik and Rohit Gautam and follows a passive investment approach.
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 is positioned for long-term investors, with higher volatility expected in the short to medium term.