Axis Mutual Fund is bringing a new thematic fund to the market. Its name is Axis Nifty India Defence Index Fund. This fund has been created based on the Nifty India Defence Sectoral Index.
The process of bringing this mutual fund from Axis Bank to the market has already begun. The New Fund Offer (NFO) subscription started from Friday, April 10. You can apply for this NFO until April 24.
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The performance of the Nifty India Defence Index will be reflected in this fund’s returns. Since the start of the Russia-Ukraine war, the defence sector index’s performance has caught investors’ attention. During Operation Sindur and the unstable situation in West Asia, defence sector stocks have flourished. In this situation, Axis Mutual Fund has launched this defence sector index fund.
Why the defence sector is gaining momentum
Amid geopolitical instability worldwide, demand for the defence industry has peaked. The government has also significantly increased spending on the defence sector in the last budget. Compared to the 2014 financial year, the defence budget for the 2027 financial year has increased 2.7 times and reached 6.8 lakh crore rupees.
Alongside this, the tendency to manufacture advanced military equipment to enhance military capability has increased. India wants to walk the path of self-reliance in manufacturing military equipment. Defence exports from India have also increased significantly in recent years. Various private organizations have joined this list alongside public sector companies.
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Axis Mutual Fund believes this trend will support the defence sector’s growth in the coming days. This fund has been launched with the aim of capturing that market.
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