Baroda BNP Paribas Mutual Fund has launched a new fund, the Nifty 200 Momentum 30 Index Fund, available for subscription from September 25 to October 9, 2024. This fund aims to tap into the momentum investing strategy, offering a mix of passive investing benefits with the potential for superior returns. The fund invests in the top 30 momentum stocks from the Nifty 200 Index, selected based on normalized momentum scores.
Momentum investing capitalizes on stocks that have shown upward trends, and according to Suresh Soni, CEO of Baroda BNP Paribas AMC, momentum investing has consistently outperformed the Nifty 50 Index over time. The fund’s strategy is based on data that shows the Nifty 200 Momentum Total Return Index has achieved a 22% CAGR over the past 15 years, making it an attractive option for investors seeking long-term gains with lower risk exposure to small-cap stocks.
This fund provides a smart option for investors looking to combine cost-efficiency with factor-based investing, specifically targeting momentum stocks from India’s largest 200 companies by market capitalization.
FAQs
1. What is the Nifty 200 Momentum 30 Index Fund?
It is a mutual fund investing in the top 30 momentum stocks from the Nifty 200 Index.
2. When is the subscription period?
The fund is open for subscription from September 25, 2024, to October 9, 2024.
3. What is momentum investing?
Momentum investing focuses on stocks that have demonstrated positive price trends, aiming for higher returns.
4. How has the Nifty 200 Momentum Index performed?
It has delivered a 22% CAGR over the past 15 years.
5. Who should invest in this fund?
Investors looking for a passive, cost-efficient option with a momentum-based strategy should consider this fund.
6. Is this fund risky?
While it focuses on large-cap stocks, all equity investments carry some risk, though momentum investing reduces small-cap exposure.
Summary
Baroda BNP Paribas Mutual Fund’s Nifty 200 Momentum 30 Index Fund is a new offering aimed at leveraging momentum investing to deliver potentially superior returns. With its focus on top-performing stocks from the Nifty 200 and a solid track record of the momentum strategy, it presents an appealing option for long-term investors. The subscription period runs from September 25 to October 9, 2024.
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