THEBUSINESSBYTES BUREAU

MUMBAI, APRIL 10, 2026

Axis Mutual Fund, one of India’s leading asset management companies, has launched its new fund offering – Axis Nifty India Defence Index Fund – an open-ended index fund that invests in the constituents of the Nifty India Defence TRI.

The New Fund Offer (NFO) which opened for subscription on April 10, 2026, will close on April 24, 2026.

The Axis Nifty India Defence Index Fund aims to provide returns, before expenses, that closely correspond to the performance of the Nifty India Defence Total Return Index (TRI), subject to tracking error.

The fund offers investors a low-cost, systematic and transparent way to participate in the long-term structural opportunity emerging from rising global defence spending, India’s accelerating defence modernisation, and the government’s strong push towards domestic manufacturing and exports.

Globally, defence spending has been on a sustained rise, crossing USD 2.7 trillion in 2024, driven by increasing geopolitical tensions, regional conflicts, and the transition towards a multipolar world order. This structural shift has led to heightened and sustained investments in military capabilities across both developed and emerging economies. India is also participating meaningfully in these trends, supported by higher budgetary allocations for the modernisation of defence capabilities, policy reforms encouraging greater private sector participation, enhanced foreign direct investment limits, and a strong emphasis on expanding defence exports.

India’s defence budget has grown nearly 2.7 times since FY14, reaching approximately ₹6.8 lakh crore in FY26, underscoring the government’s long-term commitment to strengthening defence capabilities. Domestic defence production has nearly doubled over the past five years, with official targets to double again by 2029. Defence exports have also scaled rapidly, rising from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25, reflecting increasing global acceptance of Indian defence platforms and systems.

By replicating the underlying index, the Axis Nifty India Defence Index Fund aims to track a focused basket of companies that derive a meaningful portion of their revenues from defence-related activities. 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 appropriate caps. The index is rebalanced semi-annually, ensuring discipline and transparency.

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.”

India’s defence sector is witnessing a structural upcycle, driven by rising domestic defence spending, a strong policy push under Atmanirbhar Bharat, and accelerating defence exports from a lower base. The global shift towards a multipolar world order is further supporting sustained defence expenditure, creating long-term opportunities for Indian defence companies, even as recent market corrections have made valuations relatively more attractive.

The fund will be managed by Nandik Mallik and Rohit Gautam and follows a passive investment approach, eliminating fund manager bias while offering diversification across leading defence-focused companies. Given the thematic nature of the sector, investors should expect higher volatility in the short to medium term and are encouraged to consider this fund as a long-term allocation, preferably through systematic investment plans.