Axis Nifty500 Quality 50 Index Fund – Features, Benefits & Investment Guide

• Sushil Bajaj |
• 27 August 2025 |

Investors nowadays seek funds with long-term wealth creation with consistency. Good quality stocks have always outperformed broader markets by delivering consistent performance with low risk. Considering such investors, Axis Mutual Fund has introduced the Axis Nifty500 Quality 50 Index Fund which tracks the Nifty500 Quality 50 Index. The index aims at identifying and investing in the best 50 “quality” companies with strong finances and fundamentals.

In this article, let’s acquaint with the features, advantages, disadvantages, and suitability of this fund.

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What is Axis Nifty500 Quality 50 Index Fund?

Axis Nifty500 Quality 50 Index Fund is an index fund providing passive return of the Nifty500 Quality 50 Index. It screens top 50 quality firms from the Nifty 500 space on the basis of their quality scores on the following parameters:

• High Return on Equity (ROE)
• Low Debt/Equity Ratio
• Stable Year-on-Year Earnings Growth

Investment in this fund avails the investor with varied holdings of 50 fundamentally robust stocks from different sectors.

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Important Details

• Fund Type: Open-ended Index Fund
• Index Benchmark: Nifty500 Quality 50 TRI
• Objective: To correspond with the Nifty500 Quality 50 Index performance, with risk of tracking error
• Investment Philosophy: Passive (Index Fund)
• Portfolio: Top 50 best-performing companies of the Nifty 500 space
• Ideal For: Long-term investors focusing on stable and consistent wealth creation

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Benefits of InvestingNifty500 Quality 50 Index Fund

1. Exposure to High-Quality Companies – It focuses on firms with healthy balance sheets, good profitability, and stable earnings.
2. Diversification Across Sectors – Investors gain exposure to the best 50 corporations from varied industries, reducing concentration risk.
3. Passive & Low-Cost Strategy – As an index fund, it follows a passive approach, typically with lower expense ratios than actively managed funds.
4. Long-Term Wealth Creation – Quality companies offer stable compounding, making them suitable for long-term wealth accumulation.

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Risks of Axis Nifty500 Quality 50 Index Fund

• Market Risk: Subject to overall equity market volatility.
• Tracking Error: Performance may slightly differ from the index due to costs and cash holdings.
• Quality Stocks Focus: If the “quality” theme underperforms, returns could be lower than other indices.

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Who Should Invest?

• Long-term investors (>5 years horizon).
• Investors seeking low-cost access to high-grade, fundamentally solid companies.
• Those preferring a passive, low-cost strategy.
• Conservative equity investors seeking relatively stable performance compared with broad-market indexes.

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How to Invest?

You can invest in Axis Nifty500 Quality 50 Index Fund by visiting our online investment link.

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FAQs

• Q1: What is the benchmark of this fund?
  It tracks the Nifty500 Quality 50 TRI (Total Return Index).
• Q2: Is this fund actively managed?
  No, it is a passive index fund replicating the index.
• Q3: What is the minimum investment?
  Usually, SIP options start from ₹500, though it may vary.
• Q4: Who should avoid this fund?
  Short-term investors or those aiming for aggressive returns, since the fund emphasizes stability over risk-taking.
• Q5: How does it differ from a Nifty50 Index Fund?
  Nifty50 Index Fund invests in the largest companies by market cap, while this fund invests in 50 companies chosen based on quality parameters, not size.

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Conclusion

Axis Nifty500 Quality 50 Index Fund stands as the perfect bet for those who are firm believers in the long-term effectiveness of quality investing. With its focus on stable and top-quality businesses, the fund can become the perfect component of a diversified portfolio for consistent wealth creation.