SBI Mutual Fund and Axis Mutual Fund have recently announced the introduction of new investment schemes designed to cater to diverse investor needs.
SBI Mutual Fund, India’s largest fund house, has launched the SBI Dynamic Asset Allocation Active Fund of Fund (FoF), while Axis Mutual Fund has unveiled the Axis Nifty500 Quality 50 Index Fund. These initiatives aim to provide investors with opportunities in dynamic asset allocation and high-quality index tracking.
The SBI Dynamic Asset Allocation Active FoF is an open-ended scheme intended to invest in units of actively managed equity and debt-oriented mutual fund schemes. The New Fund Offer (NFO) will occur from August 25 to September 8. The fund’s objective is to generate long-term capital appreciation by dynamically allocating assets across equity and debt based on prevailing market conditions. Nand Kishore, MD & CEO of SBI Funds Management, highlighted, “The SBI Dynamic Asset Allocation Active FoF provides investors a mix of actively managed equity and debt strategies, adjusting allocations to manage risk and capture opportunities for long-term wealth creation.”
This scheme is structured to allocate 35%-65% of its assets to equity and equity-oriented schemes, 0%-65% to debt and debt-oriented schemes, and up to 5% in money market instruments. It will primarily invest in SBI Mutual Fund schemes but may also include allocations from other mutual fund houses. As of July 31, 2025, SBI Mutual Fund managed assets worth approximately ₹12 lakh crore.
Axis Mutual Fund’s new offering, the Axis Nifty500 Quality 50 Index Fund, is an open-ended index fund that will follow the Nifty500 Quality 50 TRI. This NFO opened on August 21 and will close on September 4. Managed by Karthik Kumar and Hitesh Das, the fund provides investors with low-cost and transparent exposure to 50 high-quality companies from the Nifty 500 universe.
According to Axis Mutual Fund, the Nifty500 Quality 50 Index selects companies using factors such as return on equity, financial leverage, and earnings stability, through a rules-based approach that minimises human bias. B. Gopkumar, MD & CEO of Axis AMC, remarked, “Quality is a time-tested investment factor that has shown resilience in uncertain markets and an ability to capture upside in growth cycles.”
The Axis fund requires a minimum investment of ₹100 during the NFO, with subsequent investments permitted in multiples of ₹1. An exit load of 0.25% applies if redeemed within 15 days of allotment, with none after this period. Ashish Gupta, CIO of Axis AMC, explained, “By investing in businesses across different sectors and market caps, this fund offers investors a portfolio designed to weather downturns and participate in growth phases.”
The SBI Dynamic Asset Allocation Active FoF is aimed at addressing the demand for robust asset allocation strategies. D P Singh, Deputy MD & Joint CEO of SBI Funds Management, noted, “The scheme adapts to evolving market conditions, offering diversification across equity and fixed income within a single product.” Investors can enter with a minimum of ₹5,000 during the NFO, with additional investments starting at ₹1,000.
Both investment schemes present fresh opportunities for investors seeking diversified exposure across various asset classes and market segments. As the investment landscape evolves, these funds strive to offer structured and disciplined approaches to capital growth.
The Axis Nifty500 Quality 50 Index Fund has historically demonstrated resilience during market downturns, including the Global Financial Crisis and the COVID-19 correction, while also achieving competitive long-term returns. Over the 15 years ending July 2025, it achieved a compounded annual growth rate of 15.6%, compared to 12.1% for the Nifty 50, with lower volatility.