What is UTI Nifty200 Momentum 30 Index Fund?
UTI Nifty200 Momentum 30 Index Fund is an open-ended scheme replicating/tracking the Nifty200 Momentum 30 Index. Index aims to track the performance of 30 high momentum stocks with in Nifty200 Index. Stocks based on their 6 months and 12 months volatility adjusted returns - known as normalized momentum score - are considered to be part of the overall portfolio*. To put it simply, it is a portfolio that aims to capture the 6 months and 12 months returns of the momentum of the index.
Why invest in UTI Nifty200 Momentum 30 Index Fund?
It helps in constructing a portfolio that systematically add relatively performing stocks and remove relatively non-performing stocks, based on pre-defined criteria, without individuals’ intervention.
Addition and removal of stocks is majorly driven by movements in prices of stocks, which is reflection of market trend.
It helps in largely reducing subjective biases by adding winners and removing laggards based on well- defined processes
Who may invest in this index fund scheme?
Investment in this index thorough an Index Fund route may help investors in generating potentially higher returns as compared to pure beta trackers or broad market indices. However, investors should be ready to take higher volatility and higher risk also in their portfolio. Further, investors looking for passive way of taking exposure to Momentum factor, may consider investing in this index.
What is Nifty200 Momentum 30 Index?
Nifty200 Momentum 30 Index aims to track the performance of the top 30 companies with high momentum within the Nifty200 Index. Stocks are selected based on their normalized momentum score which is determined based on its 6-month and 12-month price return, adjusted for its daily price volatility. Stock weights are based on a combination of the stock’s normalized momentum score and its free-float market capitalization # .
What are top 5 stocks in Nifty200 Momentum 30 Index, Nifty200 Index, Nifty50 Index?
What is the sector exposure for Nifty200 Momentum 30 Index?
Currently, the index is overweight on IT & Pharma sectors, whereas underweight on Financial Services.
This shows portfolio drift towards sectors which have shown strong momentum.
What is the Growth of Nifty200 Momentum 30 Index since inception?
Since inception i.e., April 1, 2005 the index (including dividends) has grown ~16 times as compared to Nifty 200 growth of 12 times and Nifty 50 growth of 8 times.
What is the historic drawdown in Nifty200 Momentum 30 Index?
Momentum is aggressive investment style and is relatively riskier as compared to Nifty 200 and Nifty 50. It may undergo period of relative underperformance when there is sharp change in market cycles like sharp recovery or sharp drop.