Axis Mutual Fund is launching the Nifty EV & New Age Automotive Index Fund from October 16 to October 30, 2026. This passive fund allows retail investors to gain exposure to the electric vehicle value chain, including battery producers and technology firms, with a minimum investment of ₹100.
Axis Mutual Fund has introduced its Nifty EV & New Age Automotive Index Fund, which is India's first index fund focused on the electric vehicle sector. The New Fund Offer (NFO) is set to run from October 16 to October 30, 2026. Investors can participate in this offering with a minimum investment of ₹100, which aims to provide access to a wide range of retail investors.
This is a passive investment product, meaning the fund will track the performance of the Nifty EV & New Age Automotive Total Returns Index rather than relying on a fund manager to select individual stocks. By following this index, the fund aims to capture the growth of the entire EV ecosystem. The index draws its pool of stocks from the Nifty 500 and includes not only vehicle manufacturers but also companies involved in battery manufacturing, raw material processing, and advanced automotive software development.
As of late September, the underlying index had a diversified structure with 44 per cent in large-cap stocks, 29 per cent in mid-cap stocks, and 27 per cent in small-cap stocks. While this mix provides exposure to both established and growing companies, investors should be aware that exposure to small and mid-cap segments can introduce higher volatility compared to large-cap focused funds. The fund will be managed by Nandik Malik and Rohit Gautam.
For investors, the EV sector represents a growing opportunity, with penetration rates rising from under 1 per cent in fiscal year 2021 to 9.4 per cent by the end of fiscal year 2026. However, the sector is also capital-intensive and sensitive to various pressures, including fluctuations in raw material prices, changes in government policies, and intense competition among manufacturers. To discourage short-term trading and protect the fund from unnecessary volatility, an exit load of 0.25 per cent will be applied if the investment is redeemed within 15 days of allotment.
Investors tracking this fund may want to monitor the broader performance of the EV and new-age automotive sector, as well as the fund's ability to mirror the performance of its underlying index. The primary benefit of this passive structure is typically lower management costs, though the performance will depend entirely on how the companies within the index grow over the coming years.