Edelweiss Asset Management on October 11, 2024 launched two funds, the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund, which is an index fund, and the Edelweiss Nifty500 Multicap Momentum Quality 50 ETF, which is an exchange-trade fund (ETF).
The two funds will aim to replicate the performance of the underlying index, the Nifty 500 Multicap Momentum Quality 50 Index, which tracks the performance of 50 stocks selected from a universe of Nifty 500 stocks.
NFO Details
The new fund offer (NFO) for both funds will run from October 11 to October 25, 2024.
The multi-factor index fund is based on two factors: momentum and quality. The minimum investment is Rs 100 for both lump sum and systematic investment plans (SIPs), with additional increments of Re 1.
For the ETF, the minimum subscription amount is Rs. 5,000, and in multiples of Re. 1 thereafter. An exit load of 0.10 per cent will be applicable for withdrawals made within 30 days of the initial investment.
Both funds will track the performance of 50 stocks chosen from the Nifty 500 stocks universe and offer investors access to stocks with strong fundamentals and price momentum.
The portfolio is allocated across the Nifty 500 universe, with 10 stocks from Nifty 100, 15 stocks from Nifty Midcap 150, and 25 stocks from Nifty Smallcap 250. The investment strategy is rule-based, with benefits of low-cost passive investing.
Radhika Gupta, managing director and CEO, Edelweiss Mutual Fund, said: “By combining momentum and quality, the index fund and ETF will have stocks with strong financial health, earnings stability, and consistent fundamentals, while capturing market trends and reducing risk, especially in the mid-cap and small-cap segments.”
The funds will invest in all the constituents of the Nifty500 Multicap Momentum Quality 50 Index in the same proportion as the underlying index. The scheme will aim to leverage two complementary factors – momentum and quality, to deliver consistent risk-adjusted returns across market cycles.
The fund house shared data showing that Nifty500 Multicap Momentum Quality 50 has outperformed the top-performing active funds in the flexi-, large-, mid-, and multi-cap categories.
