Nippon India Mutual Fund (NIMF) on Wednesday launched the Nippon India Nifty 500 Momentum 50 Index Fund. This open-ended scheme aims to capture the growth potential of India’s equity market by investing in top-performing stocks from the Nifty 500 index.
A Momentum 50 Index Fund is a type of index fund that invests in the top 50 stocks from a broader index (in this case, the Nifty 500) based on their momentum. Momentum refers to the tendency of stocks that have performed well in the recent past to continue performing well in the future.
The fund is a passively managed index fund which will employ an investment approach designed to track the performance of Nifty 500 Momentum 50 TRI. The fund is designed to provide investors with a diversified and efficient way to participate in the Indian equity market by investing in the underlying securities of the Nifty 500 Momentum 50 Index in the same proportion. The fund seeks to capitalize on the performance of stocks that have exhibited relatively strong momentum in the recent past.
Key Features:
Passive Management: The fund replicates the performance of the Nifty 500 Momentum 50 TRI. It aims to capture the potential of India’s growth story by investing in a basket of top 50 momentum-driven stocks from the Nifty 500 index universe.
Diversification: It provides exposure to a wide range of stocks across market caps.
Momentum Focus: The fund targets stocks with strong momentum to potentially enhance returns.
Low-Cost Structure: As an index fund, it typically has lower expense ratios than actively managed funds.
Momentum refers to the tendency of stocks that have performed well in the recent past to continue performing well in the future.NFO Period: The New Fund Offer (NFO) is open from September 11 to 25, 2024.
Minimum Investment: The minimum investment amount is Rs. 1,000.
“This Fund offers investors a diversified exposure to India’s growth story, while focusing on companies exhibiting strong upward momentum,” said Sundeep Sikka, ED and CEO, Nippon India Mutual Fund.
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Nippon India Mutual Fund offers 43 passive schemes inclusive varied offerings under ETF, Index Funds and Fund of Fund. -
Nippon India ETF is one of the largest ETF players with AUM of Rs 1.52 trillion (US$ 18.1 billion) and a market share of 18.3% as on August 31, 2024. -
Nippon India ETF commands 58% share of ETF folios in the industry as on August 2024 and 52% volume share on NSE and BSE.
Note: The fund’s performance is subject to tracking errors, and there is no guarantee that the investment objective will be achieved.
First Published: Sep 11 2024 | 2:51 PM IST
