What is the Max Life Midcap Momentum Index Fund?
The Max Life Momentum Index Fund is a newly launched New Fund Offering (NFO) provided by Max Life Insurance that focuses on investing in mid-cap stocks with high growth potential. It is the industry's first Momentum Index Fund.
The fund aims to achieve long-term capital appreciation by investing in the top 50 mid-cap companies on the basis of momentum score, with potential for high growth.
The fund follows a momentum investing strategy, focusing on stocks that have shown strong recent performance and are expected to continue growing in the future. It tracks a benchmark index, that is, the Nifty Midcap 150 Momentum 50 and selects stocks based on their inclusion and weightage in the index.
Highlights of Max Life Midcap Momentum Index Fund
| Aspect |
Details |
| Investment Objective |
To achieve long-term capital appreciation by investing in mid-cap companies with high growth potential. |
| Benchmark Index |
NIFTY Midcap 150 Momentum 50 |
| Risk Profile |
Moderate Risk |
| Fund Launch Date |
30th January 2024 |
| Current NAV |
₹10 |
| Minimum Investment |
₹2,000/month (Capital Guarantee Plans)
₹3,000/month (Online Savings Plans) |
People also read: Max Life Nifty 500 Momentum 50 Fund
Reasons Why You Should Invest in Max Life Midcap Momentum Index Fund
Max Life Momentum Index Fund is the industry's first Momentum Index Fund with a remarkable 5-year benchmark return of 28.10% as on 21st December 2023. This fund stands out by investing in the top 50 companies from the midcap universe based on their momentum score, all without the influence of any fund manager bias.
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Proven Track Record:
Max Life Midcap Momentum Index Fund has a decade-long track record, boasting an impressive 28.10% benchmark return. This solid performance demonstrates the fund's ability to capture the momentum of midcap stocks, potentially delivering substantial returns for investors seeking growth opportunities.
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Investment Strategy:
What sets this fund apart is its unique investment strategy. By selecting the top 50 companies from the midcap universe based on momentum scores, the fund ensures a dynamic and responsive portfolio. This strategy leverages market trends and eliminates any subjective bias that may be introduced by a fund manager, providing a transparent and systematic approach to investment.
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Tailored Investment Plans:
Max Life Midcap Momentum Index Fund offers flexible investment options through its Online Savings Plan and Capital Guarantee Solution available with Policybazaar. What's even more exciting is the opportunity to invest with 0 charges. With a commitment as low as ₹2000 per month for Capital Guarantee Plan and ₹3000 per month for Online Savings Plans investors can get high returns.
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Exclusive Offer for Policybazaar:
Max Midcap Momentum Index Fund is extending an exclusive Pre-NFO offer for Policybazaar investors, allowing them to enter the market at the Net Asset Value (NAV) of ₹10. This unique opportunity provides early access to a fund with a proven track record and a strategy designed for long-term growth.
What are Index Funds?
Index funds in India are a type of mutual fund that aims to mirror the performance of a specific stock market index. These funds are designed to track the movements of a chosen benchmark, such as the Nifty 50 or the Sensex, which represent the performance of the overall stock market or a particular sector.
They are passively managed, meaning the fund manager doesn't actively pick stocks, but simply invests in the same stocks and proportions as the underlying index.
What is Momentum Investing?
Momentum investing is an investment strategy that tries to capitalize on the continuation of existing trends in the market. It focuses on buying securities, like funds or stocks, that have been performing well recently (rising prices) and selling them when they show signs of slowing down or reversing. The strategy includes assets with better returns and excludes those with poor performance, all within a defined analytical timeframe, making it a systematic and disciplined investment approach.
Midcap Fund and its Growth Phase
As the companies in the portfolio mature, they experience strong revenue and earnings growth, leading to potential price appreciation for the fund.
Why is Midcap Momentum Index Fund Smart Investment?
Investing in a Midcap Momentum Index Fund is a smart choice for several reasons:
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High Growth Potential: Midcap companies, especially those exhibiting momentum, can offer significant growth potential due to their aggressive expansion plans and ability to capture market share from larger players.
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Diversification: Investing in a diversified basket of mid-cap stocks reduces risk compared to concentrating on a single company or sector.
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Momentum Riding: By tracking a momentum index, the fund aims to capitalize on existing upward trends in prices, potentially leading to higher returns than the broader market, particularly during bull runs.
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Active Management: Active management allows the fund manager to adjust the portfolio based on changing market conditions and momentum dynamics, potentially enhancing performance.
About Max Life
Max Life Insurance Company Limited (formerly known as Max New York Life Insurance Company Limited) is an Indian life insurance company headquartered in New Delhi and the largest non-bank private-sector life insurer in India. It is an 80:20 joint venture between Max Financial Services and Axis Bank.
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Max Life Insurance achieved significant progress across various business parameters in the Financial Year 2022-23.
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The company has reinforced its position by prioritizing the development of a successful life insurance business.
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The core values of long-term savings and protection have been central to Max Life Insurance's strategic focus.
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Assets under management witnessed a substantial 14% increase, reaching Rs. 122,857 crores.
How to Buy Max Life Midcap Momentum Index Fund from Policybazaar?
To buy the Max Midcap Momentum Index Fund from Policybazaar, follow these steps:
Step 1: Go to the Policybazaar website or open the Policybazaar app. Log into your existing account or create a new one if you don't have an account yet.
Step 2: Add your name and contact number on the pre-quote page to compare different plans.
Step 3: Once logged in, you'll be prompted to fill in your city, age, and contact numbers 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 Max Life Plans in blue card. Select the Max Life Midcap Momentum Index Fund option that best suits your needs from the following options:
Step 5: In the Max Life Midcap Momentum Index 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 the details of the plan 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 mode of payment 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 Max Life Midcap Momentum Index Fund from Policybazaar?
Investing through Policybazaar offers a range of valuable benefits:
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Convenience: With Policybazaar, you can invest in the Max Life Momentum Index Fund online, eliminating the need for physical visits to banks or insurance agents.
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Comparison: Policybazaar provides a platform to compare various plans, including new funds. This ensures that you have all the necessary information to make an informed decision and secure the best deal available in the market.
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Expert Guidance: Policybazaar boasts a team of financial experts who are ready to assist you in selecting the most suitable NFO plan based on your specific requirements and financial goals.
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Tax Advantages: Investing in the Max Life Midcap Momentum Index Fund through Policybazaar can lead to tax benefits. The platform helps you understand and navigate the potential tax advantages associated with your investment, optimizing your financial planning.
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Easy Redemption: When redeeming your NFO investment, Policybazaar provides a seamless process, subject to the terms and conditions specified in the NFO agreement.
Generate wealth Earn 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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