Axis Mutual Fund has introduced the Axis Nifty India Defence Index Fund, an open-ended scheme designed to track the Nifty India Defence Total Return Index. The fund opens for subscription on April 10 and will close on April 24. This offering allows investors to gain exposure to India's rapidly evolving defence sector, which is increasingly significant due to ongoing geopolitical tensions, including the Middle East war and the Russia-Ukraine conflict. Global defence spending has surged past $2.7 trillion, driven by these tensions, while India's defence budget is expected to increase to ₹6.8 lakh crore (approximately $81.6 billion USD) by FY26, reflecting a 2.7-fold increase since FY14. The fund aims to provide a cost-effective and transparent investment vehicle, capitalizing on domestic policy support and rising private sector involvement in defence manufacturing. The index, which includes companies in aerospace, shipbuilding, and explosives, follows a rules-based methodology and is rebalanced semi-annually. B Gopkumar, MD & CEO of Axis AMC, emphasized the fund's alignment with India's strategic priorities and its suitability for long-term investors, though he cautioned about potential volatility in the short to medium term.