Axis Mutual Fund has announced the launch of its new offering — the Axis Nifty India Defence Index Fund — an open-ended index fund designed to track the performance of the Nifty India Defence Total Return Index (TRI). The New Fund Offer (NFO) will open for subscription on April 10 and close on April 24, 2026.
The fund aims to provide returns, before expenses, that closely correspond to the underlying index, offering a low-cost and transparent route for investors to tap into India’s growing defence sector. The move comes amid rising global defence spending, which crossed USD 2.7 trillion in 2024, and increased focus on military modernisation and domestic manufacturing.
India’s defence budget has nearly tripled since FY14, reaching around ₹6.8 lakh crore in FY26, while exports have surged from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25.
Commenting on the launch, B. Gopkumar said the sector is witnessing a “multi-year transformation,” driven by policy support, rising budgets, and export growth.
The fund, managed by Nandik Mallik and Rohit Gautam, will follow a passive strategy, investing in defence-related companies across segments such as aerospace, shipbuilding, and explosives. While offering diversification, the AMC noted that investors should be prepared for higher volatility and consider it as a long-term investment.