Investment Objective
Nippon India Nifty 500 Momentum 50 Index Fund aims to generate returns, which closely corresponds to the total returns of the Nifty 500 Momentum 50 Index, before accounting for expenses and subject to tracking error.
Investment Strategies
- The fund aims to passively invest in companies showing an uptrend in performance of the top 50 stocks within Nifty 500 based on Normalized Momentum Score, based on its 6-month and 12-month price return after adjusting for volatility.
- The following parameters are considered while including stocks in this index fund:-
- The stock must have a minimum listing history of 1 year as of the cut-off date.
- Non-F&O stocks hitting the circuit filter on more than 20% of the trading days in the last 6 months as on cut-off date are not included in the index.
- Companies where promoter shareholding pledge exceeds 20% are excluded from the index.
- Stocks that fall under the bottom 10 percentile based on 6-month average daily turnover or turnover ratio within the investment universe are excluded from the Nifty 500 Momentum 50 Index.
- Stock weights are determined by multiplying the free float market capitalization with the Normalized Momentum Score. These weights are capped at the lower of 5% or 5 times the free float market capitalization weight in the index. The capping is applied semi-annually.
Who Should Invest
- Investors seeking long term capital appreciation through exposure to high momentum stocks without any market cap bias.
- Investors seeking passive exposure to the Nifty 500 Momentum 50 Index to earn similar returns as the index itself.
Frequently Asked Questions
dWhat is the risk level of Nippon India Nifty 500 Momentum 50 Index Fund?
As per the fund factsheet published by the fund house, Nippon India Nifty 500 Momentum 50 Index Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in Nippon India Nifty 500 Momentum 50 Index Fund?
Nippon India Nifty 500 Momentum 50 Index Fund has no lock-in period for its investors. Thus, the investors of Nippon India Nifty 500 Momentum 50 Index Fund are free to make redemption requests on any day as per their requirements.
What type of mutual fund is the Nippon India Nifty 500 Momentum 50 Index Fund?
Nippon India Nifty 500 Momentum 50 Index Fund is an open-ended mutual fund scheme. The fund belongs to the ‘Index Fund Category’ tracking/replicating Nifty 500 Momentum 50 Index.
Is Nippon India Nifty 500 Momentum 50 Index Fund an open-ended or close-ended scheme?
The Nippon India Nifty 500 Momentum 50 Index Fund is an open-ended mutual fund scheme.
What is the benchmark index for Nippon India Nifty 500 Momentum 50 Index Fund?
Nifty 500 Momentum 50 TRI is the benchmark index of the Nippon India Nifty 500 Momentum 50 Index Fund. The fund also has Nifty 50 TRI as its additional benchmark index.