What is Max Life Nifty Momentum Quality Index Fund NFO?
The Max Life Nifty Momentum Quality 50 Index Fund NFO offers a fresh investment opportunity by focusing on the best-performing 50 companies from the Nifty 500 Index with strong momentum. This fund aims to deliver higher returns by following a "buy high, sell higher" strategy, which capitalizes on stocks with consistent upward trends.
With a flexible mix of large-cap, mid-cap, and small-cap companies, the Max Life Nifty Momentum Quality Fund allows investors to benefit from diverse market movements. The fund is ideal for long-term wealth creation as it provides an added layer of financial protection of life cover through its ULIP structure.
Key Features of Max Life Nifty Momentum Quality 50 Index Fund
The key aspects of the Max Life Nifty Momentum Quality 50 Index Fund NFO are listed below:
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Multi-Cap Coverage: Invests in the top 50 companies chosen from 100 large-caps, 150 mid-caps, and 250 small-caps.
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AI-Driven Passive Investment: The fund utilizes an AI-based approach to eliminate fund manager bias.
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Proven Returns: Benchmarked to the Nifty Momentum Quality 50 Index, with impressive returns of 24.9% over the last 10 years.
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Limited Period Offer: Get a starting NAV of ₹10, valid until August 31, 2024.
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Industry's First: Max Life Insurance is the pioneer of launching the first multi-cap index fund with a unique momentum and quality strategy in the life insurance sector.
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Multi-Factor Strategy: Combines momentum and quality factors to select high-potential companies.
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Exclusive Pre-NFO Offer: Available at ₹10 NAV through Policybazaar before the official launch.
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Flexible Investment Solutions: Offered with Max Life Online Savings Plan and Capital Guarantee Solutions. The Max Life Capital Guarantee Plans are available starting with premiums as low as ₹2,000.
How Does the Max Life Insurance Nifty Momentum Quality 50 Index Fund Work?
The Max Life Nifty Momentum Quality 50 NFO works on the basis of the following strategies:
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Investment Strategy: The fund focuses on the top 50 stocks selected from a universe of 500 based on momentum and quality investment strategies.
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Stock Selection:
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Includes top 10 from 100 large-cap stocks.
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Incorporates 15 from 150 mid-cap stocks.
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Features 25 from 250 small-cap stocks.
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AI-Driven Selection: An AI algorithm identifies stocks with the highest composite factor score (50% momentum and 50% quality), promoting winners and demoting losers.
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Risk Mitigation: Mandatory inclusion of large, mid, and small-cap stocks helps reduce risks associated with fluctuating equity markets.
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Momentum Scoring: Stocks are evaluated using a momentum score based on:
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Financial Health Indicators:
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Profit & Loss Analysis: Evaluate a company's profitability and capital efficiency.
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Debt to Equity Ratio: Higher ratios indicate potential financial risk; financial services companies are excluded from this assessment.
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EPS Growth Consistency: Reflects a company's earning quality and stability over the last 5 years.
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Rebalancing: The index is rebalanced biannually, in June and December, ensuring alignment with market dynamics.
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Performance: Historically, the fund has delivered excellent returns, with a 5-year return of 33.3% and a 10-year return of 24.9%.
Historical Performance of Nifty Momentum Quality 50 Index
| Index Name |
3-Year Returns |
5-Year Returns |
10-Year Returns |
| NIFTY Momentum Quality 50 Index |
31.8% |
33.3% |
24.9% |
| NIFTY Midcap 250 Index |
24.0% |
33.7% |
18.2% |
| NIFTY Smallcap 150 Index |
23.1% |
31.7% |
20.8% |
| NIFTY 500 Index |
15.7% |
21.9% |
15.6% |
| NIFTY 50 Index |
12.2% |
18.2% |
13.8% |
[Source: nseindia.com]
If you had invested ₹100 in the Nifty 500 Momentum Quality 50 Index 10 years ago, it would now be worth approximately ₹923, reflecting a 9x return. This highlights the power of momentum investing in generating strong long-term growth.
Sectoral Representation of Max Life Nifty Momentum Quality 50 Index
| Top Sectors |
Weightage of Invested Assets |
| Capital Goods |
30.16% |
| Financial Services |
19.99% |
| Automobile & Auto Components |
12.63% |
| Oil, Gas, & Consumable Fuels |
9.19% |
| Healthcare |
6.42% |
| Fast Moving Consumer Goods |
5.67% |
| Consumer Durables |
4.45% |
| Chemicals |
3.63% |
| Information Technology |
2.72% |
| Metals & Mining |
2.55% |
[Source: nseindia.com]
With Max Life Momentum Quality 50 NFO, invest in companies with strong business fundamentals that also deliver great returns.
Steps to Invest in Max Nifty Momentum Quality 50 Fund NFO
Follow these easy steps to start your investing in Max Life Nifty Momentum Quality 50 Index Fund:
Step 1: Begin by filling out the form on this page with your name and contact number.
NOTE: Your information is secure and will be used to tailor your investment experience.
Step 2: Click on "View Plans" to explore the available options.
Step 3: After logging in, complete the form with your city, age, and annual income to see customized plan benefits.
Step 4: Once you enter your details, you will see a range of investment options displayed. Select the plan that best suits your needs, such as:
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Max Life Capital Guarantee Savings Plan
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Max Life Capital Guarantee Plan - Waiver of Premium (WOP)
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Max Life Capital Guarantee Plan - Retirement
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Max Life Online Savings Plan
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Max Life Online Savings Plan - Waiver of Premium (WOP)
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Max Life Flexi Wealth Advantage Plan - Whole Life
Step 5: Click "Get Details" for more information about the Max Life Nifty Momentum Quality 50 Index Fund. If you have questions, click "Talk to an Expert" for a free consultation.
Step 6: Review the plan details carefully. If everything looks good, click "Proceed" to continue.
Step 7: Enter the required information and select the amount you want to invest. Choose your preferred payment method.
Step 8: Provide your KYC (Know Your Customer) details to meet regulatory requirements.
Step 9: Complete the payment process. After your payment is successful, you will receive a confirmation of your investment.
Benefits of Investing in Max Life Momentum Quality 50 Fund
The benefits of investing in the Max Life Nifty Momentum Quality 50 NFO are as follows:
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Convenience: You can easily invest online without the need to visit banks or meet with insurance agents, making the process hassle-free.
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Easy Comparison: Use platforms like Policybazaar to compare various investment plans and funds, ensuring you choose the best option for your needs.
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Expert Assistance: Benefit from the guidance of financial experts at Policybazaar, who can help you select the right investment plan that aligns with your financial goals.
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Tax Benefits: Take advantage of potential tax deductions under Section 80C and tax exemptions under Section 10(10D) of the Income Tax Act, while also receiving support in optimizing your financial strategy.
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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