Edelweiss MF to launch Edelweiss Nifty500 Multicap Momentum Quality 50 ETF

An index fund called the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund seeks to mimic the Nifty500 Multicap Momentum Quality 50 Index. Through the combination of momentum and quality factors, it seeks to provide long-term growth. The Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund offers a well-balanced exposure to large-cap, mid-cap, and small-cap stocks through an approach that seeks to replicate the Nifty500 Multicap Momentum Quality 50 Index. The index, which has a base value of 1000 and an April 1, 2005 base date, combines momentum and quality, two important components to produce long-term growth.

Edelweiss Investment Strategy

Stocks that are included in the Nifty 500 Index at the time of review can be included in the index. To guarantee a more stable portfolio, stocks with low liquidity scores are eliminated. Ten large-cap companies (stocks included in the Nifty 100 Index), fifteen mid-cap companies (stocks included in the Nifty Midcap 150), and twenty-five small-cap companies (stocks included in the Nifty Smallcap 250) are chosen for the index. 

This combination provides a multi-cap portfolio that is diversified and taps into various market niches. In the index, the weight of each stock is based on its free-float market capitalization and composite Momentum-Quality score. In order to achieve long-term outperformance, this guarantees a balance between financial stability and growth potential.

Details of the Edelweiss Nifty500 Multicap Momentum Quality 50 ETF plan

An open-ended equity index plan mimics the performance of the Nifty500 Multicap Momentum Quality 50 Index. This NFO will be managed by fund managers Mr. Bhavesh Jain and Mr. Bharat Lahoti. It is scheduled to open on October 11 and run through October 25, 2024. Investments in this scheme can be made in multiples of Rs. 1/-, with lump sum and SIP contributions up to Rs. 100 per application. Exit load condition: 0.10% for the first 30 days, then nil.

Objective 

The investment objective of the scheme is to generate returns before expenses that are comparable to the overall returns of the Nifty500 Multicap Momentum Quality 50 Index Fund, subject to tracking errors. There is no assurance or guarantee that the investment goal of the Scheme will be met.

The market may be risky when investing in NFOs, so make sure you do your research before making a purchase.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.