Axis Mutual Fund has launched the Axis Nifty India Defence Index Fund, an open-ended index fund tracking the
Nifty India Defence Total Return Index, with its NFO open from April 10 to April 24, 2026.
The fund aims to provide returns aligned with the index performance, subject to tracking error, offering a low-cost and transparent route to participate in defence sector growth.
The launch comes at a time when global defence spending has exceeded USD 2.7 trillion and India’s defence sector is witnessing strong policy support, increased budgets, and rising exports.
India’s defence budget has grown to ₹6.8 lakh crore in FY26, while domestic production has nearly doubled over five years and exports have surged to over ₹23,000 crore from under ₹2,000 crore in FY17.
The index comprises companies engaged in aerospace, shipbuilding, explosives, and allied services, selected through defined criteria and weighted by free-float market capitalisation. It is rebalanced semi-annually.
Managed by Nandik Mallik and Rohit Gautam, the fund 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 house indicated that given the thematic nature of the sector, investors should expect higher volatility in the short to medium term and consider it as a long-term allocation.
