Last Updated on September 5, 2022 at 4:14 pm
Axis Nifty 100 Index Fund is an open-ended index that aims to achieve a return close to Nifty 100 subject to tracking error. The Fund was launched in Oct 2019 and currently has an AUM of about 760 Crores.
When the fund launched, we reviewed the underlying index in detail and mentioned that we needed some time to check its tracking error to offer a recommendation.
We then wrote another article in Dec 2019 – Axis Nifty 100 Index Fund Impressive AUM but is it expensive? Since then, index funds became considerably popular, and the Nifty/Sensex funds we considered less expensive than the Axis fund grew in AUM and became more expensive!
Before we consider this, it is important for the reader to appreciate that Nifty 100 does not mean 50 more stocks than Nifty 50. Because the weightage is determined using free-float market capitalization, the top 10 stocks of both indices contain the most weight. For example, see: Do index fund returns depend upon just a few stocks (Concentration risk)?
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
Therefore Nifty 100 only offers marginally higher returns than Nifty 50 from time to time (not always). Please refer to our two previous articles on Axis Nifty 100 fund linked above.
Today Axis Nifty 100 is the 9th most popular index fund in terms of AUM.
| Scheme Name | AUM(Cr) |
| UTI Nifty 50 Index Fund | 7068.0982 |
| HDFC Index Fund-NIFTY 50 Plan | 5940.6023 |
| HDFC Index Fund-S&P BSE Sensex | 3390.3857 |
| ICICI Pru Nifty 50 Index Fund | 3065.5284 |
| SBI Nifty Index Fund-Reg | 2416.9344 |
| ICICI Pru Nifty Next 50 Index Fund | 2042.7387 |
| UTI Nifty Next 50 Index Fund-Reg | 1627.0341 |
| UTI Nifty200 Momentum 30 Index Fund | 1474.9560 |
| Axis Nifty 100 Index Fund | 760.1773 |
Today Axis Nifty 100 Index fund is the least expensive among the top 9.
| Month End | Expense Ratio(%) |
| Axis Nifty 100 Index Fund(G)-Direct Plan | 0.1500 |
| ICICI Pru Nifty 50 Index Fund(G)-Direct Plan | 0.1800 |
| SBI Nifty Index Fund(G)-Direct Plan | 0.1800 |
| HDFC Index Fund-NIFTY 50 Plan(G)-Direct Plan | 0.2000 |
| HDFC Index Fund-S&P BSE Sensex(G)-Direct Plan | 0.2000 |
| UTI Nifty 50 Index Fund Direct Plan | 0.2100 |
| ICICI Pru Nifty Next 50 Index Fund(G)-Direct Plan | 0.3000 |
| UTI Nifty Next 50 Index Fund(G)-Direct Plan | 0.3300 |
| UTI Nifty200 Momentum 30 Index Fund(G)-Direct Plan | 0.4200 |
However, in Dec 2019, these three funds were less expensive (than Axis N100).
- ICICI Pru Nifty 50 Index Fund(G)-Direct Plan
- HDFC Index Fund-S&P BSE Sensex(G)-Direct Plan
- UTI Nifty 50 Index Fund Direct Plan
This is how AMCs operate. They keep the TER low to entice subscriptions and then jack it up. The Axis fund has maintained its TER at 0.15% since inception (aside from the first few months when it was 0.16%). This is again a ploy to invite AUM. Investors should not be misled by this. If the Nifty 100 fund swells tomorrow, Axis too can be expected to jack up the TER.
Axis Nifty 100 Index Fund Performance
There are two ways in which an index fund can be evaluated: (1) how much its return differs from that of the total returns index and (2) how low is the tracking error. We publish both metrics for 40+ index funds each month. The following data is taken from the latest edition: Index fund tracking error screener July 2022.
| Qty | 1 Year return | 2 Years return |
| NIFTY 100 – TRI | 4.0532 | 24.4209 |
| Axis Nifty 100 Index Fund(G)-Direct Plan | 3.8831 | 23.9278 |
| Difference | -0.1701 | -0.4931 |
That is fairly decent. The Axis fund has the 5th smallest difference over the last 1Y (as of July 10th 2022) and the 12th smallest difference over the last 2Y (as of July 10th 2022), which is not too shabby.
Tracking error:
- Last 1Y: 0.053% – 17th out of 43 funds. The top 14 comprise Nifty and Sensex funds, which are easier to track than the Nifty 100. The 15th and 16th funds are Nifty Next 50 funds from UTI and SBI. The top has a tracking error of 0.0429% (refer to our screener for more details)
- Last 2Y: 0.0729% – 21st out of 41 funds. The topper has a tracking error of 0.0486%
This is not spectacular but also not disastrous.
The Axis Nifty 100 Index Fund has been an above-average performer over the last year and an average performer over the last 2Y. At least until its AUM swells up some more, the fund house is likely to retain the same TER.
Investors who want a predominantly large cap portfolio (like Nifty or Sensex) with a dash of mid caps (in this context up to about 25% of Nifty Next 50) in a single fund can consider the Axis Nifty 100 Index fund. For an explanation, see: Combine Nifty; Nifty Next 50 funds to create large, mid cap index portfolios.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)