What Is the Axis Nifty EV & New Age Automotive Index Fund?

Quick answer: What is the Axis Nifty EV & New Age Automotive Index Fund?

Axis Nifty EV & New Age Automotive Index Fund is an Open-Ended scheme replicating/tracking Nifty EV & New Age Automotive Index. It invests in the companies of that index, spanning vehicle makers, component makers, battery makers, raw material suppliers and auto-tech firms. It is India's first index fund on this index.* The NFO is open from 16 to 30 October 2026, and you can invest through SIP or lumpsum from ₹100, without a demat account.

Think of an Indian thali. You do not order one dish and hope it is enough. You get a little of everything on one plate. The Axis Nifty EV & New Age Automotive Index Fund works in a similar way for the EV theme. Instead of picking one carmaker or one battery company, you get a rules-based basket of companies across the EV ecosystem in a single fund.

This article explains what the fund is, what it holds, how the Axis Nifty EV & New Age Automotive Index Fund works, and what to consider before you invest.

Axis Nifty EV & New Age Automotive Index Fund at a glance

What is the fund's investment objective?

The scheme aims to provide returns, before expenses, that correspond to the performance of the Nifty EV & New Age Automotive TRI, subject to tracking error. There is no assurance that the investment objective of the scheme will be achieved.

In simple words, the fund does not try to beat the index. It aims to mirror it. The fund manager's role is to keep the portfolio in line with the index, not to choose stocks based on personal views.

Understanding the Nifty EV & New Age Automotive Index

The index is an NSE thematic index made up of Nifty 500 companies involved in electric and new-age vehicles. 'New age automotive' goes beyond battery EVs. It also covers hybrid vehicles, hydrogen fuel-based vehicles and autonomous-vehicle technology, along with companies that supply their parts and software.

Here is how the index is spread by basic industry:ⁱ

How the index manages concentration

A common worry with a theme is that a few large companies dominate. The index addresses this with weight limits:ⁱ

• Stock caps: Each vehicle maker is capped at 8%, and every other stock at 4%.

• Top 10 share: The top 10 constituents make up about 48% of the index.

• Market-cap mix: Large caps 44%, mid caps 29% and small caps 27%.

As of 30 September 2026, the top 10 constituents were:ⁱ

ⁱ The scheme may or may not hold these stocks in future. Not a recommendation.

Why an index fund on this index matters

Until now, investors could access this index only through ETFs, which need a demat account, or ETF fund of funds, which add a second layer of costs. As an index fund, the Axis Nifty EV & New Age Automotive Index Fund from Axis lets you invest and redeem directly at NAV, like any other mutual fund.

How the Axis Nifty EV & New Age Automotive Index Fund works

1. During the NFO (16–30 October 2026): You apply through SIP or lumpsum. Units are offered at ₹10 each.

2. Allotment: After the NFO closes, units are allotted to investors.

3. Reopening: The scheme reopens for continuous purchase and redemption at NAV within five business days from the date of allotment.

A unit price of ₹10 during the NFO does not make it cheaper or more valuable than any other fund. What matters is how the underlying stocks perform over time.

You can invest through the Axis Mutual Fund website or app, your mutual fund distributor, or supported investment platforms. Existing Axis MF investors can also switch from eligible schemes, subject to the source scheme's exit load and tax rules.

Starting an Axis Nifty EV & New Age Automotive Index Fund SIP with ₹100

The minimum investment is ₹100, so you can start an investment in Axis Nifty EV & New Age Automative Index Fund from ₹100 and increase it as your comfort grows. Because a thematic index can move sharply, a SIP spreads your purchases over time and helps average your purchase cost. It does not remove market risk or assure returns.

A look at index history

The fund is new and has no performance track record. For context, the Nifty EV & New Age Automotive Index TRI delivered 17.9% CAGR over 5 years against 9.0% for the Nifty 500 TRI, with higher 5-year annualised volatility of 17.3 against 14.4.^ These are index figures, not fund returns, and past performance may or may not be sustained in future.

Key risks to know

• Theme concentration: The fund is focused on one theme and is less diversified than a broad-market fund.

• Mid and small cap exposure: More than half the index is in mid and small caps, which can be more volatile.ⁱ

• Sector-specific factors: Changes in subsidies, battery-import restrictions, input costs and technology shifts can affect index companies.

• Tracking error: Fund returns may differ from index returns due to expenses and other factors.

Who may consider this fund?

The fund may suit investors seeking long-term wealth creation who have a horizon of 5 years or more, are comfortable with very high risk, and want to add a thematic satellite to an existing diversified portfolio. Your allocation should depend on your goals and risk profile, so consult your financial adviser if in doubt.

Frequently asked questions

Who manages the Axis Nifty EV & New Age Automotive Index Fund?

The fund is managed by Mr. Nandik Mallik and Mr. Rohit Gautam.

Can I invest after the Axis Nifty EV & New Age Automotive Index Fund NFO closes?

Yes. It is an open-ended scheme, so after allotment it reopens for continuous purchase and redemption at the applicable NAV.

Does the fund pay IDCW?

No. No IDCW will be declared under the scheme.

Is the index only about electric cars?

No. Vehicle makers are 40% of the index. The rest is spread across components, auto-tech, batteries, raw materials and other eligible firms.ⁱ

How is the fund taxed?

It follows equity mutual fund tax rules. Under current laws, gains on units held over 12 months are taxed at 12.5% above ₹1.25 lakh a year; gains within 12 months at 20%. Tax laws can change.ⁱⁱⁱ

The bottom line

The Axis Nifty EV & New Age Automotive Index Fund offers a rules-based way to participate in India's EV and new-age automotive theme through one fund, from ₹100 and without a demat account. It is a very high-risk thematic choice, best understood as a satellite to a diversified portfolio. Read the Scheme Information Document and Key Information Memorandum carefully before investing.

Sources and disclaimers

*First Fund in the Index Category tracking the Nifty EV & New Age Automotive Index as on 7 October, 2026.

^ Source: Nifty Indices. Data as of 30-Sep-2026. Past performance may or may not be sustained in the future. The above information should not be construed as promise, guarantee or forecast of returns.

https://www.niftyindices.com/indices/equity/Thematic-indices/nifty-ev-new--age-automotive

ⁱ Source: Nifty Indices, data as of 30-Sep-2026. The Stocks/Sectors/Industries mentioned herein are for general assessment purpose only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The scheme may or may not hold these in future. Entire list of basic industry:

https://www.niftyindices.com/indices/equity/Thematic-indices/nifty-ev-new--age-automotive

ⁱⁱⁱ For individual nature of tax implications, investors are requested to consult their tax advisors before investing.

Scheme details as per the KIM dated October 08, 2026. For complete details, read the Scheme Information Document (SID).

Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.