Axis Mutual Fund Launches Nifty500 Value 50 ETF for Value Investing
Axis Mutual Fund has introduced the Axis Nifty500 Value 50 ETF, which is an open-ended exchange-traded fund (ETF) designed to track the Nifty500 Value 50 TRI index. The New Fund Offer (NFO) period will be until March 12, 2025, and the minimum amount of investment required is Rs.500.
The ETF aims to provide investors with a low-cost and transparent way of exposure to value stocks in the Indian equity market. In accordance with a value investing approach, the fund targets stocks that are seen to be undervalued by financial metrics. It follows the Nifty500 Value 50 TRI index, which includes companies with sound fundamentals and long-term growth potential.
To remain in sync with the index, the fund will invest in the proportion of stocks and follow a passive investment strategy. Some portion of the assets can even be invested in debt and money market securities to generate liquidity and cover expenses.
The Axis Nifty500 Value 50 ETF will be managed by Karthik Kumar and listed on NSE and BSE after the NFO period, allowing investors to buy and sell units from the stock exchanges directly. The exit load has not been applied, giving the investors flexibility should they wish to trade the ETF.
The introduction of this ETF follows the increasing popularity of value investing, providing a simple and cost-effective means for investors to tap into India’s equity market. Through investing in a diversified portfolio of equities, the fund seeks to offer portfolio diversification and leverage on opportunities in the market.
Investments can be made with a minimum of Rs.500, and further investments in multiples of Rs.1 are available.
