Axis Max Life BSE 500 Dividend Leaders 50 Index Fund

The Axis Max Life BSE 500 Dividend Leaders 50 Index Fund is a passively managed equity fund that will track the BSE 500 Dividend Leaders 50 Index. The portfolio of this fund will include 50 top companies drawn from the BSE 500 Index, selected on the basis of their high dividend yield score.

What’s more, since the broad-based BSE 500 Index serves as the stock universe, the portfolio of this fund will potentially be diversified across multiple sectors and market capitalisations. Being an equity-oriented fund, equity investments will mandatory comprise at least 70% of the fund portfolio. The remaining 30% of the fund portfolio may be invested in cash, money market instruments, corporate bonds and Government bonds.

This fund will be available to current and new policyholders through various ULIP offerings such as Axis Max Life Flexi Wealth Advantage Plan and Axis Max Life Online Savings Plan. This ensures that the policyholder can get the benefit of life cover and market-linked returns from dividend yield factor-based investments through the same plan.

Since the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund is a new fund, there are currently no historical returns data for the fund. However, since the fund will attempt to track the composition and performance of the BSE 500 Dividend Leaders 50 Index, the historical returns of the underlying index may be used as a surrogate for the new fund. Below table shows the returns of the BSE 500 Dividend Leaders 50 Index versus the broad-based BSE 500 Index over various time periods as of 31 October 2025:

As you can see above, the BSE 500 Dividend Leaders 50 Index has managed to outperform the broader index by a significant margin over the medium as well as long-term 3 year, 5 year and 10 year returns period.

So, while historical returns of the index do not guarantee future returns of the index fund, it does indicate the potential of the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund to outperform the broader index over the long-term. So, policyholders should ideally consider staying invested for 5 years or longer in order to maximise the potential investment benefits from this fund.

As mentioned earlier, dividend yield is the key factor used in stock selection process of the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund. So, a better understanding of what dividend yield means and how it is calculated is crucial for determining if this factor-based passive investment is the right choice for you.
The below formula illustrates how the dividend yield of a stock is calculated:

Dividend Yield = Dividend Distributed per share / Market Price per Share

So a stock can have a high dividend yield if it distributes a significant amount as dividend relative to its stock price.
A high dividend yield can benefit investors as it indicates that the company has robust earnings or it is trading at a price that is lower than its intrinsic value. Such companies with strong cash flows are potentially less likely to be adversely impacted by volatile market conditions that might impact the broader market.

Since the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund is a passively managed equity fund, the factors used to choose investments by the fund will mirror the rules governing stock selection by the index being tracked. Below are the key steps in the stock selection process implemented by the BSE 500 Dividend Leaders 50 Index:

The Axis Max Life BSE 500 Dividend Leaders 50 Index Fund will attempt to replicate the composition of the underlying index as closely as possible, subject to tracking error . So, a closer look at the key sectors and stocks that are featured in the underlying index can provide insight into what the portfolio of the index fund is expected to look like. Below table illustrates the 5 key sectors and their individual weights that are featured on the BSE 500 Dividend Leaders 50 Index as of October 31, 2025:

As you can see, the index is well diversified across multiple sectors, which can help minimise the potential concentration risk of investing in an index fund that tracks this index.

This is what the top 5 stocks and their individual weights on the index look like as of October 31, 2025:

As you can see, the individual weight of the top 5 companies on the index is less than 5%. By limiting the exposure to any single stock, the potential impact of underperformance or out performance by any single stock is minimised leading to a decrease in the concentration risk for policyholders who invest in the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund.

Below are some key facts about the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund that one should keep in mind:

Equity investments such as the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund are subject to various risks including those that are unique to equity investments. A few of these risks to keep in mind include market risk, liquidity risk, performance risk, concentration risk, etc. Still, there are various reasons why one can consider adding this fund into their existing investment portfolio. Some of the key reasons to invest in this fund include:

• Incorporating factor-based investments based on dividend-yield into the current portfolio
• Diversification of investments across multiple market capitalisations and sectors
• Leveraging market-linked equity investments for potentially generating returns that beat inflation in the long-term
• Opportunity to benefit from long-term capital appreciation through equity investments
• Making passive investments without being impacted by possible fund manager bias

The short list of reasons to invest in this fund mentioned above are illustrative and not exhaustive. There could be numerous other reasons why an individual would incorporate this fund into their existing investments portfolio.

Apart from the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund, Axis Max Life offers various other factor-based index funds through various ULIP offerings that might suit your unique investment needs. These options include the following: