The investment objective is to provide returns that, before expenses, correspond to the total returns of the securities represented by the Skilled 500 Momentum 50 Total return index, subject to tracking error.
The scheme will be benchmarked against the Nifty 500 Momentum 50 Total Return Index and will be managed by Swapnil Mayekar and Rakesh Shetty.
It will offer both direct and regular plans with growth options only. A 1% exit fee will apply if redeemed within 15 days of the allotment date.
The minimum investment amount for a lump sum investment is Rs 500, with subsequent investments in multiples of Rs 1. For weekly, fortnightly and monthly SIPs, the minimum amount is Rs 500, with subsequent investments in multiples of Rs 1, and a minimum of 12 instalments are required.
The scheme will allocate 95-100% of its assets to Nifty 500 Momentum 50 Index constituents and 0-5% to liquid scheme units and money market instruments.
“Factor investing is relatively new in India where dynamic investing is growing rapidly. In Q1FY25, out of total assets under management of Rs 35,954 crore in factor funds, dynamic funds hold the largest share at Rs 10,353 crore, highlighting the rapid expansion of dynamic investing in the country,” said Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company.
He added that this growth can largely be attributed to momentum’s ability to match trending sectors as the Nifty 500 Momentum 50 TRI captures market trends early through dynamic sector rotation. “Accordingly, the Nifty 500 Momentum 50 TRI has outperformed the Nifty 50 TRI in 12 of the last 19 calendar years.”
Pratik Oswal, Head – Passive Funds Business, Motilal Oswal Asset Management Company, said, “The Nifty 500 Momentum 50 TRI Index can continue to remain a sound investment option due to its low-cost, rules-based and transparent approach, exposure to high momentum stocks across large, mid and small cap segments, and potential to outperform in up-trending markets. Since April 2005, the Nifty 500 Momentum 50 TRI Index has achieved an exceptional growth of 76 times, focusing on top-performing stocks in these segments.”
The scheme follows a passive investment strategy, with an objective to invest in the constituents of the Nifty 500 Momentum 50 Total Return Index. It seeks to achieve returns equivalent to the benchmark, subject to tracking error. In addition, the scheme will invest in liquid scheme units and money market instruments, as outlined in the asset allocation table.
The scheme is suitable for investors seeking returns that are in line with the Nifty 500 Momentum 50 Total Return Index, subject to tracking error, and aiming for long-term capital growth.
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