Motilal Oswal Nifty 500 Momentum 50 Index Fund

Think about an investing technique that goals to learn from the potential momentum of high performing shares.

Now doable with the Motilal Oswal Nifty 500 Momentum 50 Index Fund!

Click on right here: NFO: Make investments On-line In Motilal Oswal Nifty 500 Momentum 50 Index Fund

The Momentum issue goals to ship a portfolio of high performing shares based mostly on value efficiency.

Motilal Oswal presents a chance to expertise the advantages of Momentum investing with the Motilal Oswal Nifty 500 Momentum 50 Index Fund.

Highlights of the Nifty 500 Momentum 50 index:

Higher long-term efficiency –Delivered 25.2% CAGR since April 2005, whereas the Nifty 50 solely delivered 15.2% CAGR

A mixture of Giant, Mid, & Small cap shares –The index selects high performing shares from all three market segments, providing a diversified portfolio of momentum shares

Successfully picks up on trending sectorsTop momentum shares ship market traits early with dynamic sector rotation

Considerably outperforms through the bull market cycleHistorically, the momentum issue has considerably outperformed through the bull market cycle

The Motilal Oswal Nifty 500 Momentum 50 Index Fund is the business’s first scheme monitoring high 50 momentum shares from the nifty 500 universe.

Purpose to guide the market in the present day!

Supply/Disclaimer : MOAMC Analysis, NSE; Knowledge as of 31-Jul-2024. The data / information herein alone isn’t ample and shouldn’t be used for implementation of an funding technique. The desk/charts talked about above are used to clarify the idea and is for illustration function solely It shouldn’t be construed as an funding recommendation to any get together. Previous efficiency could or is probably not sustained in future and isn’t a assure of any future return

The weightage of those 50 shares will likely be based mostly on what? It will be nice to see what number of from the nifty 50 and nifty subsequent 50 get to be on this. If majority are from these two will it not be the identical. No level having a inventory from 500 having weightage of say 0.25 for identify sake function.

Let the nfo get subscribed after which see who’re the constituents after which make investments.

The weightage of those 50 shares will likely be based mostly on what?

The Nifty500 Momentum 50 Index tracks the efficiency of fifty shares that are chosen based mostly on Normalized momentum rating from the Nifty 500 index. The momentum rating for every firm is set based mostly on its 6-month and 12-month value return, adjusted for volatility. The load of every inventory within the index relies on the mix of inventory’s momentum rating and its free float market capitalization.

When investing in sensible beta themes like momentum, u simply drift, that is like investing like a swing dealer, as momentum is a technical indicator in contrast to different sensible beta indices like Alpha,Worth and high quality that are based mostly on the basics of a inventory.

So that you shouldn’t be bothered concerning the Index constituents extra, as u r investing within the theme greater than the shares.

Because the rebalancing/reconstitution occurs semi-annually, any inventory which confirmed momentum through the initials months might flip bearish and might wipe away the returns earlier than it’s faraway from the index. We’d like to have the ability to resolve when to enter and when to exit. As momentum works nicely throughout a bull run, however drawdown will likely be extra throughout a bearish section.

Weight of the highest 10 constituents of this index:

INDEX CONSTITUENTS

Because the rebalancing/reconstitution occurs semi-annually, any inventory which confirmed momentum through the initials months might flip bearish and might wipe away the returns earlier than it’s faraway from the index. We’d like to have the ability to resolve when to enter and when to exit. As momentum works nicely throughout a bull run, however drawdown will likely be extra throughout a bearish section.

This can be a main danger. Unsure why the unique publish from motilal oswal didn’t point out this. After studying this, I went again to Mirae Asset S&P 500 Prime 50 and checked on what foundation they establish their constitutents. It says “Index constitutents are weighted by float adjusted market capitalisation”.

This for my part means just like shares in Nifty 50, the perfect shares based mostly on market cap is chosen and cash is invested there.

Is there any hidden danger like the best way you talked about for momentum factor. All I would like is cash being invested in high 50 shares within the 500.

I used to be of the view that momentum would imply in any approach the highest corporates in India. After studying the chance, I reaslised that any inventory which simply goes up attributable to value motion might be part of the fund – this isn’t what I would like.