Momentum Investing: Axis Mutual Fund launched Nifty500 Momentum 50 Index Fund
Axis Mutual Fund recently announced the launch of a new investment scheme – Axis Nifty500 Momentum 50 Index Fund. The scheme is opened for subscription from 24th January and remains open till 7th February 2025. It will track the performance of Nifty500 Momentum 50 Total Returns Index (TRI).
The fund would help investors get access to the momentum-driven stocks from large, mid, and small-cap companies in an inexpensive manner.
The scheme stands to gain due to the increase in demand among Indian investors for passive investment strategies. Closely tracking the Nifty500 Momentum 50 TRI, the fund seeks to achieve returns, before expenses, based on the corresponding performance of the index, while being susceptible to tracking error.
This means the Nifty500 Momentum 50 Index selects stocks on their basis of momentum, without having any specific market capitalization requirement. The investor will not have to develop different momentum strategies since this structure offers a streamlined and diversified investment for participants in India’s top-performing stocks.
The portfolio of the fund will invest 95-100% of its assets in equities under the Nifty500 Momentum 50 Index. Up to 5% of the assets can be set aside for debt and money market instruments for the purpose of maintaining liquidity.
Minimum investment made for entry into the fund shall be Rs.100. Subsequent investments shall be permitted in multiples of Re 1. Units redeemed or switched-out within 15 days from the date of allotment shall attract an exit load of 0.25%. No Exit Load shall, however, be applicable to redemptions made after 15 days from the date of allotment.
The scheme is managed by two experienced fund managers who hope to ensure alignment of the fund with its objects. The option is particularly beneficial for those willing to adopt passive strategy with access to a well-diversified set of momentum-driven stocks. Hence, it may be recommended only for investors with the long-term vision and moderate level of risk appreciation.
The launch of this scheme will enable Axis Mutual Fund to offer investors a unique opportunity to tap into market momentum while availing broad diversification and low costs.
