Edelweiss Mutual Fund Introduces Nifty500 Multicap Momentum Quality 50 Index Fund and ETF
Edelweiss Asset Management recently launched two new products, the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund and Edelweiss Nifty500 Multicap Momentum Quality 50 ETF. Both funds are available for subscription between October 11 to October 25, 2024, through the New Fund Offer (NFO). The main idea behind these two new funds is to give investment exposure to a diversified portfolio of equities that are robust fundamentals and healthy price momentum.
The newly launched index fund and ETF are based on the Nifty 500 Multicap Momentum Quality 50 Index, which is designed around two key factors momentum and quality of selecting quality stocks that demonstrate solid financial health and earnings stability, with steady and sound fundamentals. This index focuses on 50 stocks from the broader universe of the Nifty 500 and can provide a balanced exposure across large, mid, and small-cap companies.
Stock Selection
The index has a mix of 10 large-cap, 15 mid-cap, and 25 small-cap stocks. This provides multicap exposure and is thereby most suitable for investors looking at offering a balanced portfolio.
Performance Highlights
The Nifty500 Multicap Momentum Quality 50 Index returned quite impressively at 23.79%, whereas the benchmark Nifty500 index returned at 15.57% over the same period. Outperformance thus lends a bit of positivity around the stock-selection process as investors pick stocks that trade with sound fundamentals coupled with positive price momentum.
Investment Options and Details
Investors can invest in the Index Fund through either lump sum or through SIP. The minimum investment in initial investment is as low as Rs.100, but for subsequent investment, one can invest in units of Rs 1. For those who are interested in the ETF, the minimum amount that has to be applied is Rs.5,000, and each subsequent investment will be available at units of Rs 1.
Management Team and Strategy
As the co-managers for the factor investing strategy at Edelweiss Mutual Fund, the Index Fund will be managed by Bhavesh Jain and Bharat Lahoti. The ETF will be managed by Bhavesh Jain. These funds utilize a systematic approach in stock selection by bringing into use both the momentum as well as the quality factors. This can be utilized to minimize risk, especially in the mid and small-cap areas while still capturing market opportunities.
Edelweiss Mutual Fund is one of India’s most rapidly growing asset management companies, offering equities and, in more recent times, a whole line of factor investing and fixed-income products. The company serves both local and international clients.
Edelweiss’s new series offers an investor exposure to a disciplined, multi-factor investment approach capturing the growth potential of stocks with strong fundamentals across market capitalizations.
