Nippon India Nifty 500 Momentum 50 Index Fund NFO: Date & NAV

Nippon India Nifty 500 Momentum 50 Index Fund-Direct Growth: Complete Overview

Nippon India Mutual Fund (NIMF) last Wednesday (11 September 2024) launched its Nippon India Nifty 500 Momentum 50 Index Fund. The goal of this open-ended scheme is to invest in high-performing stocks from the Nifty 500 index to get the growth potential of the Indian equities market.

The NFO scheme is available for subscriptions from 11 September 2024 and the new fund offer closure date is 25 September 2024. After that, this Mutual Fund Scheme will be available for continuous sale and repurchase on October 8, 2024.

What does the Fund offer?

An index fund known as a Momentum 50 Index Fund allocates capital to the top 50 stocks from a larger index-in this case, the Nifty 500-according to those stocks' momentum. Momentum is the ability of equities with strong recent performance to maintain strong future performance.

The product is an index fund that is passively managed and will use an investment strategy aimed at tracking the performance of the Nifty 500 Momentum 50 TRI. By investing in the underlying stocks of the Nifty 500 Momentum 50 Index in the same proportion, the fund is intended to give investors a diversified and effective approach to participate in the Indian equities market. The fund aims to profit from the performance of stocks that have recently shown a fair amount of momentum.

The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. 

Key Points:

Low-cost option: Investing in the equity market can be done more affordably with passively managed index funds, which often have lower expense ratios than actively managed funds.

Lowest Investment: A wide range of investors can participate because the minimum investment is as little as Rs.1,000.

Flexibility: The fund provides investors with the ability to construct and manage their portfolios over time by providing systematic investing choices such as SIPs and SWPs.

Focus on momentum: The fund is based on momentum equities, which have performed well lately. Although this technique has a bigger potential for rewards, it also has a higher degree of volatility.

Scheme Plan: The scheme is available in two options Nippon India Nifty 500 Momentum 50 Index Fund-Direct and Nippon India Nifty 500 Momentum 50 Index Fund-Regular.Today at the Nippon NFO, we're dedicated to providing you with useful information on this new NFO, including financial characteristics and any prior performance. Keep reading to know the details of this new fund offer.

Nippon India Mutual Fund Details

43 passive schemes, including a variety of options under ETF, Index Funds, and Fund of Funds, are available from Nippon India Mutual Fund. 

As of August 31, 2024, Nippon India ETF had a market share of 18.3% and an AUM of Rs 1.52 trillion (US$ 18.1 billion), making it one of the biggest ETF operators. 

As of August 2024, the Nippon India ETF holds a 58% market share for ETF folios and a 52% volume share on the NSE and BSE.

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Fund Overview

The Nippon India Nifty 500 Momentum 50 Index Fund NFO minimum subscription amount is Rs.1000 and in multiples of Rs.1 thereof.

How To Invest In The Scheme After The Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on October 08, 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Nippon India Nifty 500 Momentum 50 Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

Subject to tracking errors, the scheme's investment objective is to provide returns that are consistent with the total returns of the stocks as represented by the Nifty 500 Momentum 50 Index before expenditures. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Nippon India Nifty 500 Momentum 50 Index Fund

Risk Factors In Such Funds

• Any index fund has tracking errors, which can result in schemes producing returns that are inconsistent with the performance of the Nifty 500 Momentum 50 Index or any of the securities included in or covered by the index. These errors can be caused by a number of different things.

• The value of the equities that make up the benchmark index is strongly correlated with the NAV of the units. The value of this will fluctuate in response to changes in the stock market, which could alter the NAV of the scheme's units. The scheme's net asset value (NAV) may also fluctuate over extended periods of time during market downturns due to changes in interest rates, macroeconomic and political developments, and other factors.

• The scheme's performance may be impacted by tracking inaccuracy. Nonetheless, NAM India would continuously track the Scheme's tracking discrepancy and work to keep it as small as practically possible.

• Any removal or addition of stocks to the Nifty 500 Momentum 50 Index will necessitate the liquidation or purchase of those stocks at the going rates since the plan intends to invest at least 95% of the net assets in securities that make up the index.

Past Performance of Medium to Long-Duration Funds

Nippon India Nifty 500 Momentum 50 Index Fund-Growth Fund Managers:

• Mr. Himanshu Mange.

Conclusion

The fund has a profile that is high in risk. In favourable markets, momentum stocks can perform well; nevertheless, in volatile or bearish markets, they may suffer large losses.

Your investing horizon and risk tolerance should be taken into account. This fund can be a suitable choice for your portfolio if you believe in the momentum strategy and are willing to take on more risk in exchange for possibly bigger returns. However, because momentum stocks can be volatile, it's crucial to buy for the long term.