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Edelweiss Asset Management on Friday launched two funds- the ‘Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund (Index Fund) and the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund ETF (ETF)’.
The New Fund Offer (NFO) will be open for subscriptions from October 11 to 25, 2024.
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This multi-factor index fund is based on two factors – momentum and quality. It tracks the performance of 50 stocks chosen from the Nifty 500 stocks universe and offers investors access to stocks with strong fundamentals and price momentum.
Key Highlights:
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This is the first multicap smart beta index fund and ETF that combines quality and momentum to select 50 stocks from the Nifty500 universe -
The index selects the top 10 large-cap, 15 mid-cap, and 25 small-cap stocks from their respective universes -
The Nifty500 Multicap Momentum Quality 50 Index has delivered a return of 23.79%*, outperforming the Nifty500, which returned 15.57%* -
Nifty500 Multicap Momentum Quality 50 index has shown outperformance against the top performing active funds in the category
The fund aims to replicate the performance of the Nifty500 Multicap Momentum Quality 50 Index, subject to tracking errors. The underlying index tracks the performance of 50 stocks, selected from a universe of Nifty 500 stocks.
“We’re excited to launch this Index fund and ETF, leveraging the quality factor that’s now performing better. By combining momentum and quality, it selects stocks with strong financial health, earnings stability, and consistent fundamentals, while capturing market trends and reducing risk, especially in midcap and smallcap segments,” said Radhika Gupta, MD & CEO, Edelweiss Mutual Fund.
The funds will invest in all the constituents of the Nifty500 Multicap Momentum Quality 50 Index in the same proportion as the underlying index.
The scheme aims to leverage two complementary factors – momentum and quality, to deliver consistent risk-adjusted returns across market cycles, the fund house said in a statement.
The initial investment in the Index Fund can be a lump sum and SIP of Rs 100 per application, with increments of Rs 1 thereafter and investment in the ETF can be a minimum subscription amount of Rs 5,000 and in multiples of Re. 1 thereafter.
The index fund will be managed by Bhavesh Jain, Co-Head, Factor Investing along with Bharat Lahoti, Co-Head, Factor Investing, Edelweiss Mutual Fund and the ETF will be managed by Bhavesh Jain, Co-Head, Factor Investing, Edelweiss Mutual Fund.
As investors look for innovative and effective ways to navigate the market, these new offerings from Edelweiss Asset Management present an attractive option for those interested in combining quality with momentum in their investment strategies.
First Published: Oct 11 2024 | 3:55 PM IS