Index funds are passive mutual funds that invest the majority of their investible corpus in underlying securities that comprise the benchmark in the same proportion without changing the portfolio structure. The performance of an index fund depends entirely on how the underlying securities included in the benchmark perform in changing market cycles.
Index fund managers ensure that the portfolio structure of the fund remains the same as that of the index. If the stocks in the index do change, the fund manager ensures that these changes are made to the index fund portfolio as well as minimize tracking error.
One
index fund Can track any popular index like Nifty 50, Sensex 30, etc. Since they follow a passive investing style, index funds are known for having relatively low expense ratios. This is what makes index funds a cost-effective investment option. Investors can either invest a lump sum in index funds or they can also opt for a Systematic Investment Plan (SIP). Unlike other passive funds like ETFs, which require a demat account to invest, one does not require a demat account to invest in index funds. Investors can use their regular mutual fund account to invest in index mutual funds. Those who opt for SIP need not worry about market volatility as they invest small sums of money in periodic market cycles.
An open-ended index fund tracking the Nifty 50 index
investment objective
To provide returns before related expenses close to the total return of Nifty 50 subject to tracking errors. However, no assurance can be given that the investment objective of the scheme will be achieved.
liquidity
The plan offers units for subscription and redemption at NAV based prices on all business days starting after five business days from the date of allotment. Under normal circumstances, the AMC will remit the redemption amount within 10 business days from the date of receipt of the request from the unit holder.
Benchmark
nifty 50 index trai
Minimum Application Amount
5,000 and thereafter in multiples of Rs.1/-
Minimum additional purchase amount –
Rs.1,000 and thereafter in multiples of Rs.1/-
The minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a scheme.
Schemes & Options Under Plan Schemes
Axis Nifty 50 Index Fund – Regular Plan
Axis Nifty 50 Index Fund – Direct Plan
Options under each plan
- growth
- Income Distribution Cum Capital Withdrawal (IDCW) (Payout and Reinvestment Facility)
regular plan
The Regular plan is available to investors who buy/subscribe units to the scheme through a distributor.
direct plan
Direct plan is only for those investors who buy/subscribe units in a scheme directly with the fund and it is not available for investors who route their investments through the distributor.
Eligible Investors / How to Apply
All categories of investors (whether existing or new unit holders) are eligible to subscribe under the Direct Scheme as per the information document of the scheme. Investments under the Direct Plan can be done through various modes proposed by the Fund to invest directly with the Fund {except the platform where the investor’s applications for membership of the Units are routed through the Distributors}. All the schemes will have a common portfolio.
load structure
Entry Weight: Not Applicable
Exit Load: Nil
An open-ended index fund tracking the Nifty 50 index
Investors should consult their financial advisors if in doubt about whether the product is a good fit for them.
Mutual fund investments are subject to market risks, read all the documents related to the scheme carefully.