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NIFTY 500 Momentum 50 Index

Nifty 500 Momentum 50 Index is a stock market index that tracks the performance of the top 50 companies from the Nifty 500 based on their recent price performance (momentum). It's designed to capture the potential of fast-growing stocks.

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What is the NIFTY 500 Momentum 50 Index?

The NIFTY 500 Momentum 50 Index is designed to track the performance of the top 50 companies within the NIFTY 500 index, selected based on their Normalized Momentum Score. This score is calculated using the companies’ 6-month and 12-month price returns, adjusted for volatility. It identifies companies that have shown strong price movements over these periods.

The index is useful for benchmarking fund portfolios and launching index funds, ETFs, and other structured products. The weights of the companies in the index are determined by combining their normalized momentum scores with their free-float market capitalizations.

Key Features of the NIFTY 500 Momentum 50 Index

Momentum-based selection: Stocks are chosen based on their strong price performance over 6 and 12 months, adjusted for volatility.
Diversified exposure: While focused on momentum, the index still offers exposure to a broad range of sectors within the Nifty 500.
Semi-annual rebalancing: The index is adjusted twice a year to reflect changing market conditions.
Weighting based on momentum and market cap: The index combines momentum score and free-float market capitalization to determine the weight of each stock.
Potential for higher returns: By focusing on high-momentum stocks, the index aims to capture superior performance.
Risk: Investing in momentum stocks can be volatile, as past performance is not indicative of future results.
Transparency: The index methodology is clearly defined and publicly available.
New index: Relatively recent launch, providing a fresh opportunity for investors.

Information About NIFTY 500 Momentum 50 Index

Particulars	Details
Launch Date	June 04, 2024
No. of Constituents	50
Base Date	April 01, 2005
Base Value	1000
Calculation Frequency	End of day
Methodology	Tilt Weighted
Index Rebalancing	Semi-Annually

[Source: nseindia.com] Data updated as of August 15, 2024.

Performance of NIFTY 500 Momentum 50 Index

Index Name	3-Year Returns	5-Year Returns	10-Year Returns
NIFTY 500 Momentum 50	31.8%	33.9%	25.4%
NIFTY Midcap 150	28.4%	31.6%	21.0%
NIFTY Smallcap 250	26.0%	32.7%	18.0%
NIFTY 100	18.9%	19.9%	14.6%
NIFTY 500	21.0%	22.6%	15.7%

Which are the Constituent Stocks of the NIFTY 500 Momentum 50 Index?

Company’s Name	Weightage (%)
Trent Ltd.	5.18
Adani Ports and Special Economic Zone Ltd.	5.11
Bharat Electronics Ltd.	4.84
Bajaj Auto Ltd.	4.74
Mahindra & Mahindra Ltd.	4.74
REC Ltd.	4.44
Siemens Ltd.	4.36
Hindustan Aeronautics Ltd.	4.34
Power Finance Corporation Ltd.	4.01
Tata Power Co. Ltd.	3.62

[Source: nseindia.com] Data updated as of August 15, 2024.

What are the Sectors Included in the NIFTY 500 Momentum 50 Index?

Top Sectors	Weightage (%)
Capital Goods	32.57
Financial Services	17.27
Automobile and Auto Components	13.75
Power	10.54
Consumer Services	5.18
Services	5.11
Consumer Durables	3.36
Construction	3.14
Metals & Mining	2.58
Oil, Gas & Consumable Fuels	2.08
Healthcare	1.66
Realty	1.65
Chemicals	1.10

[Source: nseindia.com] Data updated as of August 15, 2024.

NIFTY 500 Momentum 50 Index Fundamentals

P/E*	P/B**	Dividend Yield
31.51	6.04	0.69

*P/E: Price-to-Earnings Ratio **P/B: Price-to-Book Ratio Data updated as of August 15, 2024.

NIFTY 500 Momentum 50 Index Methodology

The Nifty 500 Momentum 50 Index employs a rigorous selection process to identify the top 50 momentum stocks from the Nifty 500.

Stock Eligibility:
- Must be part of the Nifty 500 index.
- Must be available for trading in the F&O segment with limited price band hits.
- Promoters' pledged shares should be less than 20%.
- Must meet liquidity criteria based on average daily turnover and turnover ratio.
Index Construction:
- A Normalized Momentum score is calculated for each eligible stock based on its 6-month and 12-month price returns, adjusted for volatility.
- The top 50 stocks with the highest Normalized Momentum scores are selected.
- Each stock's weight in the index is determined by a combination of its momentum score and free-float market capitalization.
Index Management:
- The index is reconstituted semi-annually in June and December.
- Rebalancing occurs on a semi-annual basis, with a four-week notice period.
Governance:
- Index management is overseen by a professional team with a robust governance structure, including a Board of Directors, Index Advisory Committee, and Index Maintenance Sub-Committee.

How to Invest in NIFTY 500 Momentum 50 Index Fund Through Policybazaar?

Follow the steps below:

Step 1: Enter your name and contact number in the form available on this page.

NOTE: Your credentials are completely secure and will be used to provide you with personalised plan benefits.

Step 2: Input essential information such as your city, age, and name.

Step 3: Compare various plans using criteria like their performance, ratings, and other relevant information.

Step 4: Select Max Life and check out plans having NIFTY 500 Momentum 50 Index.

Step 5: Select "Invest Now" and proceed by following the prompts displayed on the screen to finalise your purchase.

Step 6: Provide the required KYC details and complete the payment procedure.

Step 7: Upon successful payment, you will receive confirmation of your purchase.

Frequently Asked Questions

What is free-float market capitalization?

Free-float market capitalization is the total market value of a company's shares that are available for public trading. It excludes shares held by promoters, insiders, government, and other locked-in shareholders.
Essentially, it's the value of a company based on the shares that can be freely bought and sold by the public.
How are stocks selected for the Nifty 500 Momentum 50 Index?

Stocks are selected from the Nifty 500 based on their momentum scores. The top 50 stocks with the highest momentum scores are included in the index.
How often is the Nifty 500 Momentum 50 Index rebalanced?

The index is rebalanced semi-annually in June and December.
What is the benefit of investing in the Nifty 500 Momentum 50 Index?

The index aims to capture the potential of high-growth companies by focusing on stocks with strong price momentum. However, it's important to note that past performance is not indicative of future results, and investing in momentum stocks can be volatile.
How are the weights of companies in the NIFTY 500 Momentum 50 Index determined?

The weights are determined by combining the companies’ normalized momentum scores with their free-float market capitalizations, ensuring a balanced representation of momentum and market size.
Can investors directly invest in the NIFTY 500 Momentum 50 Index?

Investors cannot directly invest in the index, but they can invest in financial products like ETFs and index funds that track the performance of the NIFTY 500 Momentum 50 Index.
What are the risks associated with the NIFTY 500 Momentum 50 Index?

The primary risk is market volatility, as the index focuses on high-momentum stocks, which can experience significant price fluctuations. Additionally, past performance is not indicative of future results.

*Past 5 Year annualised returns as on 01-09-2024
*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.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

NIFTY 500 Momentum 50 Index

What is the NIFTY 500 Momentum 50 Index?

Key Features of the NIFTY 500 Momentum 50 Index

Information About NIFTY 500 Momentum 50 Index

Performance of NIFTY 500 Momentum 50 Index

Which are the Constituent Stocks of the NIFTY 500 Momentum 50 Index?

What are the Sectors Included in the NIFTY 500 Momentum 50 Index?

NIFTY 500 Momentum 50 Index Fundamentals

NIFTY 500 Momentum 50 Index Methodology

Stock Eligibility:

Index Construction:

Index Management:

Governance:

How to Invest in NIFTY 500 Momentum 50 Index Fund Through Policybazaar?

Frequently Asked Questions

What is free-float market capitalization?

How are stocks selected for the Nifty 500 Momentum 50 Index?

How often is the Nifty 500 Momentum 50 Index rebalanced?

What is the benefit of investing in the Nifty 500 Momentum 50 Index?

How are the weights of companies in the NIFTY 500 Momentum 50 Index determined?

Can investors directly invest in the NIFTY 500 Momentum 50 Index?

What are the risks associated with the NIFTY 500 Momentum 50 Index?

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