Motilal Oswal Asset Administration Firm (MOAMC) has introduced the launch of its Momentum FACTOR primarily based ETF and Index Fund – Motilal Oswal Nifty200 Momentum 30 ETF (Alternate Traded Fund) and Motilal Oswal Nifty200 Momentum 30 Index Fund, an official assertion mentioned.
NFO: Open/shut dates
The NFO will open on January 21, 2022 and closes on February 4, 2022.
Minimal Software quantity and Methods to purchase on-line?
-The Minimal Software quantity For Index Fund is Rs. 500/- and in multiples of Re. 1/-thereafter.
– On ongoing foundation investor can buy/redeem models of the Scheme by way of monetary advisor or by log-in to www.motilaloswalmf.com
– Additional, the minimal utility quantity for ETF is Rs 500/- & in multiples of Re.1/- thereafter. On Alternate
– Traders should purchase/promote models of the Scheme in spherical lot of 1 unit and in multiples thereafter; Instantly with Mutual Fund – Purchase/promote models of the Scheme in unit measurement of seven,000 models and in multiples thereafter
-On ongoing foundation investor can buy/redeem models of the Scheme by way of monetary advisor or by log-in to www.motilaloswalmf.com
Nifty200 Momentum 30 ETF and Index Fund
-These are open ended schemes replicating or monitoring the efficiency of Nifty200 Momentum 30 Index.
– The momentum issue refers back to the tendency of profitable shares to proceed performing properly within the close to time period.
– Globally issue investing and notably Momentum Issue has caught investor consideration over final decade, MOAMC mentioned.
The way it works?
– The Nifty200 Momentum 30 index selects prime 30 firms with highest 6 month and 12 month ‘momentum’ as outlined in index methodology.
– The constituents have to be a part of Nifty 200 index and must also be obtainable for buying and selling in F&O section with a minimal itemizing historical past of 1 12 months.
– The utmost weight of inventory is capped at 5% and index will get rebalanced semi-annually in June and December.
“On a historic foundation, Momentum has been among the finest performing components, producing sizable extra returns. Among the strongest returns for momentum have historically been generated in bull-markets and expansionary enterprise cycles. The Nifty200 Momentum 30 index have outperformed the Nifty 200 TRI on a risk-adjusted returns foundation over the past 15 years; in truth the index has outperformed the Nifty 200 TRI in 12 out of final 15 calendar years. The common 3-year Rolling Returns of the Nifty200 Momentum 30 TRI is increased than Nifty 200 TRI by 5.90% at 16.7%,” the official assertion added.
Commenting on the launch, Navin Agarwal, MD & CEO, Motilal Oswal Asset Administration Firm Ltd., mentioned, “Motilal Oswal AMC is one among the most important AMC in India within the worldwide funds section and solely fund home to have passive funds throughout main key segments. With an goal to convey merchandise in accordance to the evolving wants of the buyers, we shall be introducing a slew of the funds within the issue investing section. Out first product on this class would be the Motilal Oswal Nifty200 Momentum 30 ETF and Index Fund which shall be appropriate for buyers in search of publicity to components. We aspire to construct distinctive model positing by establishing ourselves as a fund home to drive the issue investing class in India.”
Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Administration Firm Ltd mentioned, “There have been numerous theories making an attempt to clarify the momentum impact. Some recommend that it’s compensation for bearing excessive threat; some imagine it might be a consequence of market inefficiencies whereas others imagine it’s purely due to behavioural biases.”
Pratik Oswal additional added, “As India scripts its financial restoration from the pandemic influenced disruption, companies are seen planning capex led growth and total earnings are anticipated to be on upward pattern. That is anticipated to channelize bull associated market situation which makes it conducive for Momentum Issue to be the lead performer. We suggest buyers to make use of our momentum targeted fund as a satellite tv for pc allocation method to boost their portfolio’s risk-adjusted returns.”