Axis Mutual Fund Launches Nifty Energy Index Fund & ETF

Axis Mutual Fund has introduced the Axis Nifty Energy Index Fund and Axis Nifty Energy ETF, providing investors with passive exposure to India’s dynamic energy sector. These new schemes are designed to mirror the performance of the Nifty Energy Total Return Index (TRI) before expenses.

The new offerings present distinct subscription windows and investment profiles for market participants. The underlying strategy focuses on broad exposure across the energy value chain.

• The Axis Nifty Energy Index Fund opened for subscription on August 7 and will close on August 21, 2026.
• The Axis Nifty Energy ETF opens on August 12 and closes on August 21, with subsequent listing on stock exchanges.
• Both schemes aim to generate returns corresponding to the Nifty Energy Total Return Index (TRI).
• Investments will cover the entire energy value chain, including oil and gas, power generation, transmission, distribution, renewable energy, and energy equipment.

Targeting India’s Energy Transformation

India’s energy sector is undergoing significant structural transformation, driven by increasing electricity demand and expansion in renewable capacity. This shift includes substantial investments in transmission infrastructure, bolstering national energy security.

Axis Mutual Fund projects India will add over 580 GW of power generation capacity in the next decade, with renewable energy contributing a significant share. B. Gopkumar, MD & CEO, Axis AMC, underscored the sector’s importance, stating that “energy remains a critical component of economic growth and that demand across the energy ecosystem is expected to increase with industrialisation, urbanisation and digitalisation.”

Nifty Energy Index Composition

The underlying Nifty Energy index comprises up to 40 stocks selected from the Nifty 500 universe, all associated with the energy theme. The index employs a free-float market capitalisation weighting methodology.

Specific concentration limits are applied to ensure diversification within the index. These rules govern individual stock weights and overall industry exposure during rebalancing periods.

• No individual stock can exceed a weight of 10% at rebalancing.
• No single industry can account for more than 25% of the index at rebalancing.
• The index undergoes reconstitution and rebalancing twice annually, specifically in March and September.

The Axis Nifty Energy Index Fund and Axis Nifty Energy ETF will be co-managed by Nandik Mallik and Rohit Gautam. These thematic passive investment products are tailored for investors seeking exposure to India’s long-term energy sector growth story.