Axis Nifty50 Equal Weight Index Fund - Regular (G)

The scheme follows a passive investment strategy. The Scheme would invest in stocks comprising the underlying index and shall track the underlying index. The Scheme may also invest in Money Market Instruments and units of debt & liquid mutual fund schemes, in compliance with Regulations to meet liquidity and expense requirements. The Scheme aims to invest in stocks forming part of the underlying Index in the same ratio as per the index to the extent possible and to that extent follow a passive investment strategy, except to the extent of meeting liquidity and expense requirements. Events like the constituent stocks becoming illiquid in the cash market, the index provider changing the constituents, a large dividend going ex but lag in its receipts, etc. tend to increase the tracking error. DERIVATIVES STRATEGY The Scheme may invest in various derivative instruments which are permissible under the applicable regulations. Such investments shall be subject to the investment objective and strategy of the Scheme and the internal limits if any, as laid down from time to time. Investment in equity derivatives of underlying securities shall be undertaken in instances of portfolio rebalancing or unavailability of the securities, in cases of events such as corporate action, etc. for short term and defensive considerations. These include but are not limited to stock futures and stock options. Derivatives are financial contracts of pre-determined fixed duration, like stock futures/options, whose values are derived from the value of an underlying primary financial instrument such as: interest rates, exchange rates, commodities, and equities. Derivatives can be either exchange traded or can be over the counter (OTC). Exchange traded derivatives are listed and traded on stock exchanges whereas OTC derivative transactions are generally structured between two counterparties.