Business: Motilal Oswal Mutual Fund has launched its new NFO named Motilal Oswal Nifty 500 Momentum 50 Index Fund in which investors will be able to apply from 4 September 2024 to 18 September 2024. This is the first fund launched by any mutual fund which will track the Nifty 500 Momentum 50 Total Return Index. This fund will have exposure to all these large, mid and small-caps included in the Nifty 500 index, which will see the most activity.

The Nifty 500 index has given investors a return of 75.2 per cent in the last one year, while in the last five years till July 31, 2024, the index has given an average return of 35.9 per cent annually. According to Motilal Oswal Mutual Fund, the Nifty 500 Memont 50 Total Return Index has the potential to give strong returns but along with this, it can also witness huge volatility.  

Motilal Oswal Nifty 500 Momentum 50 Index Fund is an open-ended fund that will track or be based on the Nifty 500 Momentum 50 Total Return Index. Investors can invest in this NFO with a minimum of Rs 500 through lump sum or SIP. Talking about the load structure, there is no entry load on investment in it. But there will be an exit load of 1% if redeemed within 15 days from the date of allotment. There will be no exit load if redeemed after 15 days from the date of allotment. Swapnil Mayekar and Rakesh Shetty are its fund managers.   

On the launch of Motilal Oswal Nifty 500 Momentum 50 Index Fund, Prateek Aggarwal, MD and CEO, Motilal Oswal AMC said, Factor investing is new in India in which momentum investing is growing rapidly. In the first quarter of FY 2024-25, Momentum Fund has the highest market share of Rs 10,353 crore in factor funds of Rs 35,854 crore, which shows that the trend towards investing in such funds has increased. He said, Nifty 500 Momentum 50 Index Fund TRI quickly captures the market trend through dynamic sector ratio. Nifty 500 Momentum 50 Index Fund TRI has been successful in giving higher returns than Nifty 50 TRI in 12 out of the last 10 calendar years.  

In terms of SIP returns, Nifty 500 Momentum 50 Index Fund TRI has given a return of 82 percent in one year, 45.6 percent in 3 years, 41.1 percent in 5 years and 27.4 percent in 10 years. Whereas from August 1, 2014 to July 31, 2024, the Nifty 50 Index has given a return of 35.8 percent in one year, 21.6 percent in 3 years, 21.5 percent in 5 years and 16.3 percent in 10 years.