September 5, 2024
mayank
Nippon India Nifty 500 Momentum 50 Index Fund details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @chanakyamfguidance
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Past Performance of NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the Nippon India Nifty 500 Momentum 50 Index Fund Open Date, Close Date?
NFO opens on September 11, 2024
NFO will close on September 25, 2024
What is the Investment Strategy?
The scheme seeks to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty 500 Momentum 50 Index before expenses, subject to tracking errors.
Basic Details
| Fund House | Nippon India Mutual Fund |
| Issue Open | 11 September 2024 |
| Issue Close | 25 September 2024 |
| Type | Open-ended |
| Category | Equity: Flexi Cap |
| Min. Investment(Rs) | 1,000 |
| Plans | Growth, IDCW |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | Nifty 500 Momentum 50 TRI |
What is the Benchmark Index of Nippon India Nifty 500 Momentum 50 Index?
The Nifty500 Momentum 50 Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. The Normalized Momentum Score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its free-float market capitalization.
Nifty500 Momentum 50 Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty500 Momentum 50 Total Returns Index.
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | 3.76 | 39.37 | 68.19 | 34.74 | 23.79 |
| Total Return | 3.99 | 40.21 | 69.51 | 35.77 | 24.97 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 23.28 | 22.34 | 22.60 |
| Beta (NIFTY 50) | 1.28 | 0.94 | 0.88 |
| Correlation (NIFTY 50) | 0.73 | 0.81 | 0.83 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 30.68 | 5.97 | 0.74 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| Trent Ltd. | 6.43 |
| Bajaj Auto Ltd. | 5.40 |
| Adani Ports and Special Economic Zone Ltd. | 4.88 |
| Bharat Electronics Ltd. | 4.63 |
| Mahindra & Mahindra Ltd. | 4.62 |
| REC Ltd. | 4.32 |
| Siemens Ltd. | 4.26 |
| Hindustan Aeronautics Ltd. | 4.18 |
| Power Finance Corporation Ltd. | 4.00 |
| Tata Power Co. Ltd. | 3.51 |
Performance Review of the Fund Manager of Nippon India Nifty 500 Momentum 50 Index?
1) Himanshu Mange
Education: Mr. Mange has done B.Com and CA
Experience: Prior to joining Nippon India MF, he has worked with Tata AIA Life Insurance, Pipalia Singhal & Associates, Felix Solutions, Lodha Group and N.B.Gandhi & Co.
Past Performance of his Schemes
| Fund | CPSE ETF | It’s Benchmark | Nippon India ETF BSE Sensex | It’s Benchmark |
| 1 Year | 99.73 | 86.95 | 26.96 | 35.10 |
| 3 Year | 56.07 | 45.98 | 13.70 | 16.50 |
| 5 Year | 35.33 | 33.31 | 18.81 | 21.07 |
| 7 Year | 20.35 | 18.40 | 15.89 | 16.07 |
| 10 Year | 14.57 | 14.07 | — | — |
As on 05-09-2024
Which Company Owns Nippon India Nifty 500 Momentum 50 Index?
Nippon Life India Asset Management Ltd.
Address: 4th Floor, Tower A, Peninsula Business Park, Ganapatrao Kadam Marg, Lower Parel (W), Mumbai – 400013
Website: https://mf.nipponindiaim.com/
Registrar & Transfer Agent:
KFin Technologies Ltd.
Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad – 500016
Website: https://mfs.kfintech.com/mfs/
Is it good to invest in Nippon India Nifty 500 Momentum 50 Index NFO?
Guidance for Nippon India Nifty 500 Momentum 50 Index Fund by Paresh Gordhandas, C.A., Research Analyst.
The Nippon India Nifty 500 Momentum 50 Index Fund is based on the The Nifty500 Momentum 50 Index. This Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. Top constituents by weightage in this Index include Trent, Bajaj Auto , Adani Ports, BEL , M&M among others. The fund is being managed by Mr. Himanshu Mange. A sample study of the other funds managed by him show a satisfactory picture.
1 year Price Return by the underlying Index is 68.19% and 5 year Price Return by the underlying Index is 34.74%. This fund offers investors a way to tap into stocks that have shown strong upward momentum. The fund is built around momentum stocks, which have shown strong recent performance. This strategy can potentially deliver higher returns but also comes with greater volatility.
Hence, it becomes important to invest for a longer duration in such funds. Such type of Funds are more suitable for investors who have a higher risk taking capacity.
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