Motilal Oswal to Launch Nifty 500 Momentum 50 ETF

Motilal Oswal Mutual Fund has recently announced a new ETF—the Motilal Oswal Nifty 500 Momentum 50 ETF. This fund will track the Nifty 500 Momentum 50 Index, which picks out the top 50 stocks from the Nifty 500 based on their recent price performance. If you’re into momentum investing, where the idea is to “buy high, sell higher,” this ETF might catch your eye.

What’s the Momentum Strategy?

This ETF uses a momentum strategy, which means it focuses on stocks that have been doing well over the last 6 and 12 months. The stocks are selected based on a momentum score, which also factors in volatility. It gives you exposure to large, mid, and small-cap companies, offering a pretty balanced mix. Some of the top stocks in the Motilal Oswal Nifty 500 Momentum 50 ETF include Trent, with a 6.43% weightage, followed by Bajaj Auto (5.4%), Adani Ports and SEZ (4.88%), Bharat Electronics (4.63%), and Mahindra & Mahindra (4.62%). 

ETF Details 

Why Consider This ETF?

This ETF is a low-cost way to get in on momentum stocks, and it’s passively managed, meaning it just tracks the index. With a transparent, rule-based approach, there’s less chance for human bias when it comes to stock selection. Plus, the index itself has outperformed many others over the years, making it a compelling option for those looking for long-term growth.

What to Watch Out For

Keep in mind that momentum investing can mean more volatility and higher transaction costs, especially in down markets. It’s best suited for investors with a high-risk appetite who are ready to stay invested for the long haul.

Conclusion: So, if you’re looking for a way to tap into high-performing stocks without the hassle of active management, the Motilal Oswal Nifty 500 Momentum 50 ETF could be worth a closer look. Just make sure you’re comfortable with the risks that come with momentum investing.

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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.