Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
The New Fund Offer (NFO) is open for subscription from April 3 to April 17, 2025.
About the Nifty 500 Momentum 50 Index
The Nifty 500 Momentum 50 Index selects 50 stocks from the Nifty 500 based on their momentum score. This score is calculated using 6-month and 12-month price returns, adjusted for volatility.
The index is rebalanced semi-annually to reflect changing market conditions and capture stocks with the strongest price momentum.
Momentum investing follows the principle of buying stocks that are already showing an upward trend and selling them before the trend reverses.
This strategy relies on price movement rather than company fundamentals, aiming to capitalise on continued stock gains.
Key features of Groww Nifty 500 Momentum 50 ETF
- Investment type: Open-ended ETF
- Benchmark: Nifty 500 Momentum 50 Index – TRI
- Fund Manager: Nikhil Satam
- Minimum investment: ₹500 (and in multiples of ₹1 thereafter)
- Subscription period: April 3 – April 17, 2025
Performance and risk considerations
Historically, the Nifty 500 Momentum 50 Index has outperformed broader indices like the Nifty 50 and Nifty 500 in several market phases, especially during recoveries.
Data suggests that momentum investing has matched or outperformed the broader market in 70% of recovery periods.
Momentum investing has also demonstrated favorable risk-adjusted returns over the long run, making it an option for investors looking to benefit from market trends.
However, it remains a high-risk strategy, as stock price trends can reverse quickly.
Who should consider this ETF?
The Groww Nifty 500 Momentum 50 ETF may be suitable for investors who:
- Prefer a rule-based approach to investing.
- Want exposure to momentum-driven stocks without manually managing their portfolio.
- Seek a passive investment strategy aligned with market trends.
Important considerations
Past performance does not guarantee future returns. Investors should review the scheme information document and consult a financial advisor before investing.