Axis Max Life Nifty 500 Multifactor 50 Index Fund

Axis Max Life Nifty 500 Multifactor 50 Index Fund is a passively managed equity fund that tracks the Nifty 500 Multifactor MQVLv 50 Index. So the portfolio of this fund will feature the same 50 stocks as the index being tracked. This way the fund will attempt to replicate the performance of the index being tracked as closely as possible within the margin of tracking error.

The Axis Max Life Nifty 500 Multifactor 50 Index Fund features 50 stocks drawn from the broad-based Nifty 500 Index. These basket of stocks features the highest composite percentile score based on the 4 factors of momentum, quality, value and low volatility.

The Axis Max Life Nifty 500 Multifactor 50 Index Fund is an equity fund, hence the fund has to mandatorily invest between 80-100% of assets in equities. The remainder of fund assets accounting for up to 20% of the investment portfolio can be invested in cash and money market instruments. Existing and new investors can invest in this fund through various Axis Max Life ULIP schemes such as Online Savings Plan, Flexi Wealth Advantage Plan, Smart Term with Additional Returns ULIP, etc.

Since the Axis Max Life Nifty 500 Multifactor 50 Index Fund is newly launched fund, there are no historical returns of this fund. However, since the fund is passively managed and designed to closely replicate the performance of the Nifty 500 Multifactor MQVLv 50 Index, the back-tested data of this index can serve as a surrogate for historical returns of the fund. The below table compares performance of this multifactor-index versus the parent Nifty 500 Index across various time periods as of 24th April 2025:

Note: Above returns data are based on Total Returns Index data of respective indices as of 24 April 2025. The 3 years, 5 years, 10 years and returns since inception data shown above are CAGR returns of the indices.

As you can see from the above comparison, historically the multifactor index has outperformed the parent Nifty 500 Index by a significant margin in the short, medium and long-term. While there is no guarantee that the same level of outperformance will be maintained in the future, the Nifty 500 Multifactor MQVLv 50 Index would continue to have the potential to outperform its parent index in the future too. That said, prospective Axis Max Life ULIP policy holders should keep in mind that this equity fund does carry significant investment risk like any other market linked equity investment options.

To better understand the level of diversification that investors of this fund can get exposure to, let us take a closer look at the leading equity stocks and sectors that are featured in this fund. Since the fund mirrors the Nifty 500 Multifactor MQVLv 50 Index, a closer look at the basket of stocks that constitute this index will provide greater insight into this. The below table shows the top 10 stocks featured on the index along with their individual weights as of 24th April 2025:

As you can see, the individual weights of the 10 stocks shown above are quite close to each other this is due to the composite factor score based weightage assigned to these stocks. This reduces the potential for concentration risk for the index. Additionally, it is also clear that these stocks belong to a diverse range of sectors and industries including but not limited to oil and gas, financial services, pharmaceuticals and specialty chemicals, cement, fast moving consumer goods, etc. Furthermore, these stocks also show that the index is well-diversified across market capitalization. So, the portfolio of the Axis Max Life Nifty 500 Multifactor 50 Index Fund will be well-diversified across market caps and industries.

Now let us take a closer look at the key sectors to which investors can gain exposure through this index fund

The below table shows the top 5 sectors featured on the index as of 24 April 2025:

As you can see from above, financial services stocks accounted for close to 25% of the total weight of the index, while the top 5 sectors accounted for close to 74% of the total index weight. So you can see that the passively managed Axis Max Life Nifty 500 Multifactor 50 Index Fund will maintain significantly high exposure to potentially high growth sectors such as financial services, while ensuring overall performance stability through exposure to other sectors such healthcare, FMCG and oil & gas.

Axis Max Life Nifty 500 Multifactor 50 Index Fund is available for investment through various Unit Linked Insurance Plans offered by Axis Max Life Insurance that have the benefit of life-insurance built into them. ULIP Plans that offer investment opportunity in this fund to existing and new investors alike during the NFO period include:

• Online Savings Plan (OSP)
• Flexi Wealth Advantage Plan (FWAP)
• Flexi Wealth Advantage Plan SUPR
• Smart Term with Additional Returns (STAR) ULIP
• Capital Guarantee Solutions that offer OSP and FWAP as the market-linked product

Subsequent to completion of the NFO period, the fund will also be available for investment through other Axis Max Life ULIP Plans such as:

• Platinum Wealth Plan
• Fast Track Super
• Flexi Wealth Plus

All Axis Max Life ULIP Plans come with the benefits of life insurance in addition to the benefit of multi-factor investment available through this passively-managed equity fund.

The Axis Max Life Nifty 500 Multifactor 50 Index Fund is an equity fund that features a potentially high degree of risk to the principal invested. Common risks associated with equity investments include market risk, short term volatility risk, liquidity risk, etc. As a result, this fund may not be suited to the investment needs to all investors groups. Below are a few types of investors who can seek to benefit from investment in this multi-factor investment:

• Investors seeking long-term investments offering potentially high inflation-beating returns
• Investors with high-risk tolerance who want to invest in equities
• Investors looking to include passively managed factor-based investments into their existing investment portfolio
• Investors seeking to diversify their existing portfolio across market capitalisations and sectors
• Those seeking the dual benefit of life insurance and investment returns through a single instrument

It is notable that the above list of investor categories is illustrative and not exhaustive. There may be various other investor groups who may be benefited by investing in this fund.

Below table illustrates some key aspects of the Axis Max Life Nifty 500 Multifactor 50 Fund that prospective ULIP policyholders need to keep in mind:

This passively managed equity fund mirrors the portfolio and performance of the Nifty 500 Multicap Momentum Quality 50 Index. The fund invests in a basket of 50 stocks – 10 large cap (from the Nifty 100 Index), 15 mid cap (from Nifty Midcap 150 Index) and 25 small cap (from the Nifty Smallcap 250 Index) selected on the basis of a combination of momentum and quality factors. This fund must mandatorily invest 80% in equities while the remainder of portfolio investments i.e. up to 20% may be invested in Money Market instruments or equivalent.

This is a passively managed equity fund that track the Nifty Midcap 150 Momentum 50 Index. The primary investment of this fund is midcap equities and the 50 midcap stocks featuring the highest percentile momentum score are part of this fund’s portfolio. This fund tracks the Nifty Midcap 150 Momentum 50 Index is required to maintain a minimum equity allocation of 80% in equities while the remainder up to 20% of investible assets may be invested in money market instruments or equivalent.

This passively managed equity fund tracks the portfolio and performance of the Nifty Smallcap 250 Quality 50 Index. The portfolio of this fund includes 50 small capitalisation stocks drawn from the Nifty Smallcap 250 Index that have the highest percentile quality scores. Being an equity fund, equity allocation in the fund portfolio needs to be maintained at no less than 80% at all time. The remainder of investible assets i.e. up to 20% of fund portfolio may be allocated towards money market instruments or equivalent.