The Nippon India Nifty 500 Momentum 50 Index Fund 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.
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The new fund offer or NFO of the scheme is open for subscription and will close on September 25. The scheme will reopen for continuous sale and repurchase by October 8.
The scheme will be benchmarked against the Nifty 500 Momentum 50 TRI index. The scheme will be managed by Himanshu Mange. The minimum investment amount required during NFO is Rs 1000 and thereafter in multiples of Rs 1. Redemptions can be of a minimum amount of Rs 100 or any number of units or account balance, whichever is less.
The scheme will allocate 95% to 100% in securities comprising the Nifty 500 Momentum 50 Index and 0% to 5% in cash and cash equivalents and money market instruments and/or schemes that invest in money market securities or liquid schemes. The scheme is suitable for investors seeking long-term capital growth and desire investments in equity and equity-related securities and a portfolio that replicates the composition of the Nifty 500 Momentum 50 Index, subject to tracking errors. Also Read | First Mercedes, then drugs: Radhika Gupta explains SIP’s investments
The fund is a passively managed index fund that will employ an investment approach designed to track the performance of the Nifty 500 Momentum 50 TRI Index. 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 equal proportion.
The fund seeks to capitalize on the performance of stocks that have exhibited relatively strong momentum in the recent past, according to a press release from the fund manager.
“We are delighted to introduce the Nippon India Nifty 500 Momentum 50 Index Fund. This fund offers investors diversified exposure to India’s growth story while focusing on companies that exhibit strong upside momentum. Building on our distinguished track record in passive investing, we remain committed to delivering innovative and robust solutions that align with our clients’ evolving financial goals,” said Sundeep Sikka, CEO & MD, Nippon India Mutual Fund.
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