NSE Launches Ahimsa Index to Promote Cruelty-Free Investment Strategies

MUMBAI: The National Stock Exchange (NSE) has introduced the Nifty 500 Ahimsa Index, which includes stocks from companies within the Nifty 500 that do not intentionally harm animals in their business operations. This new index aligns with principles of non-violence, as stated in a release from the exchange.

The Nifty 500 Ahimsa Index aims to attract investors interested in ethical investing. NSE Indices noted that the index was developed in collaboration with the Ahimsagain Foundation, following their Ahimsa Investment Movement (AIM) framework. This framework evaluates companies based on how their products, services, and practices align with Ahimsa principles.

The index is expected to serve as a benchmark for asset managers and facilitate the creation of passive investment products, such as exchange-traded funds (ETFs) and index funds. Currently, at least two mutual fund houses have launched schemes based on this theme. Quantum Mutual Fund introduced a fund in 2024, while The Wealth Company Mutual Fund launched its own scheme last year.

The AIM framework categorizes companies into green, orange, and red bands, with those in the orange and red bands excluded from the index. Notably, the Nifty 500 Ahimsa Index does not include any bank stocks or those from the Reliance Industries group. However, it features top software exporters, automobile companies, real estate firms, and several others.

According to the Ahimsagain Foundation, the AIM seeks to redirect capital toward compassion. The foundation’s brochure states that while India’s mutual fund industry manages over Rs 82 lakh crore, cruelty-free investing remains limited. Many investments still indirectly support animal-linked industries, leaving ethical investors with few clear alternatives.

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