Motilal Oswal Mutual Fund files for Nifty 500 Momentum 50 Index Fund

Published on Jun 11, 2024 13:25

Motilal Oswal Mutual Fund has filed an application with SEBI to launch a new index fund, the Nifty 500 Momentum 50 Index Fund. This fund will track the performance of the the Nifty500 Momentum 50 Index.

Focus on Momentum Stocks

The Nifty 500 Momentum 50 Index identifies companies exhibiting strong price movements by considering both 6-month and 12-month returns while adjusting for volatility. The weight of each company in the index is determined by combining its normalized momentum score and its free-float market capitalization.

Index Details:

The index was launched on 4 June 2024. It has a base date of 1 April 2005 and a base value of 1000. The index consists of 50 companies and uses a tilt-weighted methodology. The index is rebalanced twice a year.

In terms of historical performance, the index has seen a strong return of 27.44% year-to-date (YTD). Over the past five years, the index has delivered a compound annual growth rate (CAGR) return of 30.48%. Since its inception, the index has achieved a CAGR return of 24.71%.