The Kotak Life Momentum Quality 50 Pension Fund is a New Fund Offering from Kotak Life Insurance, linked to the Nifty 500 Multicap Momentum Quality 50 Index. This fund invests in the top performing 50 financially stable stocks using momentum and quality strategies across large, mid, and small-cap segments. The benchmark index of this fund has shown a high RSI (return since inception) of 21.49% and a 5-year return of 28.27%. The NFO period is from April 16th to 30th, 2025.
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Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
What is Kotak Life Momentum Quality 50 Pension Fund?
The Kotak Life Momentum Quality 50 Pension Fund is a new fund launch by Kotak Life Insurance. This fund is available with the Confident Retirement Builder, which is presented as a Low Cost Pension Plan. The fund is based on the Nifty 500 Multicap Momentum Quality 50 Index. This means it invests in the top performing 50 financially stable stocks from the broader Nifty 500 universe. The selection of these 50 stocks is based on a combination of two investment strategies:
Momentum Strategy: This focuses on investing in companies that have demonstrated high returns over the last 6 and 12-month period. The aim is to promote winners and demote losers by including stocks with high returns and less volatility, while removing those with relatively poor returns or high volatility.
Quality Strategy: This emphasizes investing in companies that are financially stable, less volatile, and have long-term growth potential. The combination of these two strategies is described as a winning combination.
The underlying index follows a Multi-Cap approach, investing in the Top 10% stocks from each market capitalization within the Nifty 500. This translates to investing in the Top 10 Large-cap, 15 Mid-cap, and 25 Small-cap stocks. This diversification across various sectors aims to reduce risk.
Highlights of Kotak Life Momentum Quality 50 Pension Fund
Particulars
Details
Benchmark
NIFTY 500 Multicap Momentum Quality 50
Risk Profile
High
NFO Launch Date
16th April 2025
NFO Duration
16th to 30th April 2025
Current NAV
₹10
Minimum Investment
₹3,000 per month
Reasons Why You Should Invest in Kotak Life Momentum Quality 50 Pension Fund
Below are the reasons why you should invest in Kotak Life Momentum Quality 50 Pension Fund:
It is based on the Nifty 500 Multicap Momentum Quality 50 Index.
It invests in the top performing 50 financially stable stocks from the Nifty 500.
It uses a Momentum Strategy focusing on companies with high returns in the last 6 and 12 months.
It uses a Quality Strategy focusing on financially stable companies with long-term growth potential.
It is a Multi-Cap Fund, investing in the top 10% stocks from each market cap (Large, Mid & Small-cap).
It follows a Rule-Based Investment strategy and mimics the index declared by NSE.
It employs Passive Investing with no fund manager bias.
The index has shown Highest Returns with a return since inception (RSI) of 21.49% and a 5-year return of 28.27%.
Over a 10-year period, the index grew by 5.69 Times on an investment of Rs 100.
60% of the corpus is tax-free, with no limit on premium.
What is NIFTY 500 Multicap Momentum Quality 50?
The NIFTY 500 Multicap Momentum Quality 50 Index is a stock market index that tracks the performance of 50 companies selected from the NIFTY 500 index. These companies are chosen based on a combination of "momentum" and "quality" factors. The momentum score considers the stock's 6-month and 12-month price performance, adjusted for volatility, while the quality score evaluates factors like return on equity (ROE), financial leverage (debt-to-equity ratio), and the variability of earnings per share (EPS) growth over the past five years. The weight of each stock in the index is determined by a combination of its composite momentum-quality score and its free-float market capitalization, with individual stock weights capped at 5% during rebalancing. The index is reconstituted semi-annually in June and December. This index aims to capture potential high-performing stocks by considering both their recent market success and fundamental financial health across large, mid, and small-cap segments.
Past Performance of NIFTY 500 Multicap Momentum Quality 50 vs Other Indices
Index Name
Return Since Inception (RSI)
10-Year Return
NIFTY Multicap Momentum Quality
21.5%
19%
NIFTY 50
11.3%
12.2%
NIFTY 100
16.9%
12.4%
NIFTY Midcap 150
17.2%
17.2%
NIFTY Smallcap 250
15.9%
14.8%
NIFTY 500
12.3%
13.2%
Sector Representation of NIFTY 500 Multicap Momentum Quality 50
Sector
Weight (%)
Capital Goods
27.07
Information Technology
24.07
Financial Services
10.09
Fast Moving Consumer Goods
8.50
Automobile and Auto Components
5.82
Chemicals
5.28
Consumer Services
5.27
Healthcare
5.04
Consumer Durables
4.72
Textiles
2.68
Oil, Gas & Consumable Fuels
0.89
Services
0.57
How to Buy Kotak Life Momentum Quality 50 Pension Fund From Policybazaar?
To buy the Kotak Life Momentum Quality 50 Pension Fund from Policybazaar, follow these steps:
Step 1: Fill in your name and contact number in the form on this page to get started.
Note: Your details are kept confidential and will only be used to customize your benefits.
Step 2: You can also visit the plans just by clicking view plans below
Step 3: Once logged in, you'll be prompted to fill in your city, age, and annual income in the provided form. This information will be used to check the personalised benefits of the plans.
Step 4: After providing your personal information, you'll be presented with Kotak Life Investment Plans on a blue and red card. Select the Kotak Life Momentum Quality 50 Pension Fund option that best suits your needs from the following:
Kotak Life Confident Retirement Builder
Step 5: In the Kotak Life Momentum Quality 50 Pension Fund, click the "Get Details" tab for more information.
You can also get FREE expert consultation; just click on the talk to an expert button.
Step 6: Review plan details carefully. Once satisfied, click on the "Proceed" button and follow the prompts on the screen to move forward with the purchase.
Step 7: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred payment method for your investment.
Step 8: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.
Step 9: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
What are the Benefits of Purchasing the Kotak Life Momentum Quality 50 Pension Fund from Policybazaar?
Investing through Policybazaar offers a range of valuable benefits:
Convenience: Invest online in the Kotak Life Momentum Quality 50 Pension Fund via Policybazaar to avoid physical bank or agent visits.
Comparison: Compare multiple investment plans, including new funds, to make informed decisions and find the best market deals.
Expert Guidance: Access financial experts who help select the right NFO plan based on your needs and goals.
Tax Benefits: Maximize tax advantages under Section 80C and Section 10(10D) of the Income Tax Act through investments with Policybazaar.
FAQs
What is the investment strategy of the fund?
The fund invests in the top performing 50 financially stable stocks selected from the Nifty 500 universe. This selection is based on a combination of momentum (high returns over the last 6 and 12 months) and quality (financially stable, less volatile, long-term growth) factors.
How does the index select stocks and what is the weightage?
The top 50 stocks with the highest aggregate percentile score within the eligible universe (stocks part of Nifty 500 meeting certain criteria) are included. The weight of each stock is based on the combination of its composite momentum-quality score and its free-float market capitalization, with individual stock weights capped at 5% at the time of index rebalancing.
How often is the index rebalanced?
The index is rebalanced semi-annually in June and December.
What are the potential benefits of investing in this fund?
The fund offers access to potentially best-performing stocks across market caps. It combines momentum and quality strategies, which is considered a winning combination. It also provides diversification across various sectors, thus reducing risk. The underlying index has shown high historical returns.
What has been the historical performance of the underlying index?
The Nifty 500 Multicap Momentum Quality Index has shown an RSI Return of 21.49% and a 5-year return of 28.27%. Over a 10-year period, an investment of Rs 100 in this index would have grown to Rs 569. It has shown Highest Returns compared to other indices.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *Past 10 Year annualised returns as on 01-05-2025 *All savings plans are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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