Axis Mutual Fund has entered India’s rapidly expanding electric mobility investment space with the launch of the Axis Nifty EV & New Age Automotive Index Fund. The new open-ended passive scheme gives investors exposure to companies across the electric vehicle and next-generation automotive ecosystem through a rules-based index strategy. Positioned as India’s first index fund tracking this theme, the Axis EV Mutual Fund opens for subscription on October 16, 2026, and closes on October 30, 2026. With a minimum investment of just ₹100, the fund aims to make diversified EV-sector investing accessible without requiring investors to select individual automotive stocks.
What Is the New Axis EV Index Fund?
Axis Mutual Fund has launched the Axis Nifty EV & New Age Automotive Index Fund, an open-ended passive scheme tracking the Nifty EV & New Age Automotive Total Returns Index.
The NFO runs from October 16 to October 30, 2026, with investments starting from ₹100. The fund provides exposure to EV manufacturers, battery and component companies, raw material suppliers, charging and infrastructure players, and new-age automotive technology businesses.
Importantly, investors can access the theme through a conventional index fund structure without necessarily requiring a demat account.
Axis EV Index Fund NFO: Key Details at a Glance
Here are the most important details investors should know:
- NFO Opens: October 16, 2026
- NFO Closes: October 30, 2026
- Minimum Investment: ₹100
- Additional Investment: Multiples of ₹1 thereafter
- Investment Options: Lump sum and SIP
- Underlying Index: Nifty EV & New Age Automotive Total Returns Index
- Fund Managers: Nandik Malik and Rohit Gautam
- Exit Load: 0.25% if redeemed or switched out within 15 days of allotment
- Tentative Allotment Date: November 5, 2026
- Fund Type: Open-ended passive index fund
What Makes This EV Fund Different?
The new scheme is designed to provide diversified exposure to India’s evolving electric and next-generation mobility industry instead of relying on a handful of individual EV manufacturers.
The Axis EV Mutual Fund follows a passive investment strategy and seeks to replicate the performance of the Nifty EV & New Age Automotive Total Returns Index, subject to tracking error.
Its investment universe extends beyond companies manufacturing electric cars or two-wheelers.
The index captures businesses participating across the wider automotive transformation, including batteries, components, materials, infrastructure, and mobility technologies.
What Does the Fund Invest In?
The underlying index draws eligible companies primarily from the Nifty 500 universe and divides the EV and new-age automotive opportunity across three broad segments.
1. Vehicle Manufacturers – 37.2%
Vehicle manufacturers represent approximately 37.2% of the index.
This category can include companies involved in:
- Pure electric vehicles
- Hybrid vehicles
- Hydrogen-powered mobility
- Passenger vehicles
- Two-wheelers
- Commercial mobility solutions
This segment provides direct exposure to companies participating in the transition from conventional internal combustion engines toward cleaner mobility technologies.
2. EV Components and Equipment – 35.6%
Around 35.6% of the index represents companies supplying components and equipment required by the new automotive ecosystem.
These can include businesses involved in:
- Battery cells
- Electric drivetrains
- Motors and power electronics
- Automotive electronics
- Localised EV hardware
- Advanced automotive components
This segment is particularly important because EV growth does not benefit only vehicle manufacturers. Component suppliers can also participate as electric vehicle production scales.
3. EV Enablers and Technology – 27.3%
Approximately 27.3% of the index comprises EV enablers and technology-focused companies.
These businesses may include:
- EV infrastructure providers
- Raw material companies
- Technology suppliers
- Software-defined vehicle businesses
- Advanced mobility technology companies
This broader exposure allows the index to capture opportunities created by the electrification and digitalization of automobiles.
Large-Cap, Mid-Cap, and Small-Cap Exposure
As of September 30, 2026, the underlying index had exposure across different market-capitalization categories.
The allocation stood at approximately
- Large-cap stocks: 44%
- Mid-cap stocks: 29%
- Small-cap stocks: 27%
This means the fund is not restricted only to India’s largest automobile companies.
It can also provide exposure to mid-sized and smaller companies that may participate in emerging areas such as EV components, batteries, mobility technology, and supporting infrastructure.
Stock Weight Limits Aim to Reduce Concentration
The index methodology also includes limits on the maximum weight assigned to individual companies.
Vehicle manufacturers can have a maximum weight of approximately 8% each, while component suppliers and other EV ecosystem companies are generally capped at around 4% each.
These limits are intended to prevent the performance of a single company from dominating the overall index.
The index is also rebalanced semi-annually, allowing its composition to reflect changes in the listed EV and next-generation automotive ecosystem.
Why the Launch Matters for Retail Investors
Until now, investors seeking exposure to the Nifty EV & New Age Automotive Index largely had to access the theme through exchange-traded funds or related investment structures.
ETFs generally require investors to have a demat and trading account.
The new index fund provides another route.
Because it follows the conventional mutual fund format, investors can participate without having to buy and sell ETF units directly on the stock exchange.
This could make thematic EV investing more accessible to a broader category of retail investors.
Minimum Investment Starts at Just ₹100
Another notable feature is the low minimum investment requirement.
Investors can enter the NFO with just ₹100, with subsequent investments permitted in multiples of ₹1.
Both lump-sum and systematic investment options are available.
The low entry amount could make the fund accessible to investors who want limited initial exposure to the EV theme rather than committing a large amount immediately.
Why India’s EV Market Is Becoming an Investment Theme
The launch comes at a time when electric mobility adoption in India has moved beyond an early-stage concept and become increasingly visible across two-wheelers, three-wheelers, passenger vehicles, and commercial mobility.
According to information released in connection with the fund launch, EV penetration in India increased from less than 1% in FY21 to around 9.4% in FY26.
Annual electric vehicle registrations have also expanded significantly.
Registrations have reportedly moved from roughly 2,400 vehicles around a decade ago to more than 25 lakh vehicles during the FY2025-26 period.
That scale of growth is gradually creating a broader listed investment ecosystem around electric mobility.
Falling Battery Costs Are Changing EV Economics
Battery costs remain one of the most important factors determining the price and competitiveness of electric vehicles.
Battery module costs have declined sharply over the longer term, with the accumulated data indicating a fall of around 93% since 2010.
Lower battery costs can potentially improve EV economics by:
- Reducing manufacturing costs
- Narrowing the price gap with ICE vehicles
- Improving affordability
- Supporting higher EV adoption
- Creating greater demand for EV components and infrastructure
As battery technology continues to evolve, the beneficiaries could extend beyond vehicle manufacturers to suppliers across the EV value chain.
Policy Support Remains an Important EV Growth Driver
Government policy remains another important factor behind India’s electric mobility transition.
The extension of the PM E-DRIVE programme until March 2028 provides a longer policy runway for the development of the electric mobility ecosystem.
Government support for electric mobility can influence multiple areas, including vehicle adoption, charging infrastructure, domestic manufacturing, and technology development.
These structural changes are one reason electric mobility is increasingly being treated not simply as an automobile trend but as a broader investment theme.
No Need to Predict Which EV Brand Will Win
One of the advantages of an index-based strategy is diversification.
Instead of trying to identify which electric car company, battery manufacturer, or component supplier will eventually dominate the market, investors receive exposure to a basket of companies linked to the transformation of the automotive industry.
The Axis EV Mutual Fund therefore provides a rules-based route to participate across the ecosystem rather than making a concentrated investment in a single EV stock.
That approach may appeal to investors who believe in India’s long-term electric mobility story but do not want to predict individual winners.
What Axis AMC Says About the New Fund
B Gopkumar, MD and CEO of Axis AMC, said the new fund is aimed at providing investors with a transparent, rules-based investment avenue into the evolving automotive ecosystem.
The investment theme is supported by several structural trends, including:
- Improving economics of EV ownership
- Falling battery costs
- Government policy support
- Increasing electric vehicle adoption
- Automotive technology innovation
- Localization of EV components
- Development of supporting infrastructure
Together, these trends are reshaping India’s traditional automotive industry.
Who Manages the Fund?
The scheme will be managed by Nandik Malik and Rohit Gautam.
Since it is a passive index fund, the objective is not to actively select stocks expected to outperform the market.
Instead, the fund seeks to replicate the underlying Nifty EV & New Age Automotive TRI as closely as possible while keeping tracking differences under control.
What Is the Exit Load?
Investors should also take note of the exit load.
An exit load of 0.25% will apply if units are redeemed or switched out within 15 days from the date of allotment.
Investors staying beyond that period will need to refer to the scheme’s applicable terms when planning redemptions.
The tentative allotment date is November 5, 2026.
Why This Fund Could Put the EV Ecosystem in Focus
India’s electric mobility transformation is creating opportunities well beyond electric cars.
Future industry growth could involve:
- Electric two-wheelers
- Electric passenger cars
- Electric commercial vehicles
- Battery manufacturing
- Cell technology
- Motors and drivetrains
- Charging infrastructure
- Auto electronics
- Raw materials
- Software-defined vehicles
- Hydrogen mobility
- Advanced automotive technology
The index seeks to capture several of these interconnected opportunities through a single portfolio.
Final Takeaway
The launch of India’s first open-ended index fund tracking the Nifty EV & New Age Automotive Index marks another step in turning the country’s electric mobility transition into an accessible investment theme.
With an NFO running from October 16 to October 30, 2026, a minimum investment of ₹100, and exposure across vehicle makers, components, infrastructure and automotive technology, the Axis EV Mutual Fund gives retail investors a diversified route into the EV ecosystem.
However, electric mobility remains a thematic investment category. Its performance can be influenced by vehicle demand, valuations, government policies, battery prices, competition, and technology changes, making risk assessment important before investing.
Source: Axis Mutual Funds
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