Motilal Oswal MutualFund (MOMF) unveils Motilal Oswal Nifty 500 Momentum 50 Index Fund

-         The NFO opens on 04 September, 2024 andcloses on 18 September, 2024

Mumbai,04 September 2024: Motilal Oswal Mutual Fund (MOMF)today announced the launch of its latest new fund offer, “Motilal OswalNifty 500 Momentum 50 Index Fund". This is India’s first 500 Momentum 50Index fund.  The new fundby MOAMC is an open-ended fund replicating/tracking the Nifty 500 Momentum 50Total Return Index. The fund will offer exposure to stocks that are in thehighest momentum across the large, mid, and small-cap segments of the Nifty 500index.

Theindex has delivered 75.2% returns in the last 1 year & 35.9% in the past 5years as of July 31, 2024. While Nifty 500 Momentum 50 exhibits strongperformance potential, it may also experience higher volatility.

AboutNifty 500 Momentum 50

TheNifty 500 Momentum 50 index is based on the momentum investing strategy, whichinvolves investing in stocks that have demonstrated strong performance over arecent period. The idea is that stocks that have performed well recently willcontinue to do so in the near future. The index is constituted considering thestrong price performance of stocks in the previous 6 months and 1 year period.Further, stocks are selected from the universe of Nifty 500, thus unlike itspredecessor Nifty 200 Momentum 30 Index, this index also includes stocks fromthe Small-cap segment. Historically it has been observed that the Momentumstrategy works well in the bull and the recovery phase whereas may facechallenges during the bear market phase.

WhyNifty 500 Momentum 50?

Historically,momentum strategies have performed well as compared to the broader market overlong periods. The index follows a systematic and rules-based approach to selectstocks, reducing the risk of emotional or biased decision-making. Investorslooking to take exposure to the portfolio of strong-performing stocks may considerthe Nifty 500 Momentum 50 index fund option. Investors should also note thatthis index can be volatile in the short to medium term.

Mr.Prateek Agrawal, MD and CEO of Motilal Oswal Asset Management Company Ltd., said, “Factorinvesting is relatively new in India, within which momentum investing growingrapidly. As of Q1 FY25, out of a total AUM of INR 35,954 crore in factor funds,momentum funds hold the largest share at INR 10,353 crore, highlighting therapid expansion of momentum investing in the country. This growth can largelybe attributed to momentum''s ability to adapt to trending sectors, as the Nifty500 Momentum 50 TRI captures market trends early through dynamic sectorrotation. Consequently, the Nifty 500 Momentum 50 TRI has outperformed theNifty 50 TRI in 12 of the last 19 calendar years.

TheNifty 500 Momentum 50 has strongly outperformed the Nifty 50 which can beprimarily attributed to the recent rally in the mid-cap and small-cap spacewhich show how the Index broadly captures the momentum from all the 3 segments.Overall, the Nifty500 Momentum 50 TRI has significantly outperformed the Nifty50 TRI over the last 15 years. The index SIP returns for the Nifty 500 Momentum50 TRI have been 82% over 1 year, 45.6% over 3 years, 41.1% over 5 years, and27.4% over 10 years. In comparison, the Nifty 50 TRI has delivered returns of35.8%, 21.6%, 21.5%, and 16.3% respectively, for the same period from August 1,2014, to July 31, 2024.

Mr.Pratik Oswal, Chief of Business - Passive Funds, Motilal Oswal Asset ManagementCompany Ltd., said, "The Nifty 500 Momentum 50TRI may remain a strong investment option due to its low-cost, rules-based, andtransparent approach, its exposure to high-momentum stocks across Large, Mid,and Smallcap segments, and its potential to outperform in upward-trendingmarkets. Since April 2005, the Nifty 500 Momentum 50 TRI has achieved anexceptional 76x growth, focusing on top-performing stocks across thesesegments.”

Thefund will be managed by Mr. Swapnil Mayekar and Mr. Rakesh Shetty (debtcomponent). Both the fund managers have more than a decade of experience indriving growth.

The investment objective ofMotilal Oswal Nifty 500 Momentum 50 Index Fund is to provide returns that,before expenses, correspond to the total returns of the securities asrepresented by the Nifty 500 Momentum 50 Index, subject to tracking error.However, there is no guarantee or assurance that the investment objective ofthe scheme will be achieved.

* Investors should consult theirfinancial advisers if in doubt about whether the product is suitable for them.

The above productlabelling assigned during the New Fund Offer (NFO) is based on internalassessment of the scheme characteristics or model portfolio and the same mayvary post NFO when the actual investments are made.

About Motilal Oswal Asset Management Company:

Motilal Oswal Group possesses a legacy in equities for over 3 decades.Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI asthe Investment Manager for Motilal Oswal Mutual Fund. It was incorporated onNovember 14, 2008. It provides Investment Management and Advisory Services toinvestors based within and outside India and has Mutual Funds, AIFs and PortfolioManagement Services business.

Source: Niftyindices

Disclaimer This release has beenissued on the basis of internal data, publicly available information and othersources believed to be reliable. The information contained in this document isfor general purposes only and not a complete disclosure of every material fact.The Stocks (if any) mentioned herein is for explaining the concept and shallnot be construed as an investment advice to any party. The information / dataherein alone is not sufficient and shouldn’t be used for the development orimplementation of an investment strategy. It should not be construed asinvestment advice to any party. All opinions, figures, estimates and dataincluded in this article are as on date. The article does not warrant thecompleteness or accuracy of the information and disclaims all liabilities,losses and damages arising out of the use of this information. The statementscontained herein may include statements of future expectations and otherforward-looking statements that are based on our current views and assumptionsand involve known and unknown risks and uncertainties that could cause actualresults, performance or events to differ materially from those expressed orimplied in such statements. Readers shall be fully responsible/liable for anydecision taken on the basis of this article. The Scheme being an index scheme follows a passive investment techniqueand shall only invest in Securities comprising one selected index irrespectiveof the market conditions.

Mutual Fund investments are subject to market risks, read all schemerelated documents carefully.

For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail: rohini.kute@motilaloswal.com