Amid rising global military expenditure and increased domestic policy support, Axis Mutual Fund has launched the Axis Nifty India Defence Index Fund, tracking the Nifty India Defence Total Return Index.
The NFO opens on April 10 and closes on April 24, 2026.
Global defence spending has crossed USD 2.7 trillion, driven by geopolitical tensions and regional conflicts. India is also expanding its defence capabilities through higher budgetary allocations, policy reforms, increased private sector participation, and higher FDI limits.
India’s defence budget has reached ₹6.8 lakh crore in FY26, growing nearly 2.7 times since FY14. Domestic production has nearly doubled in five years and is expected to double again by 2029. Defence exports have increased from under ₹2,000 crore in FY17 to over ₹23,000 crore in FY25.
The index includes companies engaged in aerospace, shipbuilding, explosives, and related services, and is weighted by free-float market capitalisation with caps. It is rebalanced semi-annually.
The fund will be managed by Nandik Mallik and Rohit Gautam and adopts a passive investment strategy.
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.”
