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NFO alert: Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund, Groww Nifty India Defence ETF. Details here

NFO alert: Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund, Groww Nifty India Defence ETF. Details here

The Baroda BNP Paribas Nifty200 Momentum 30 Index Fund is designed to provide investors with a means to enhance the momentum in their investment portfolios. Groww Nifty India Defence ETF will allow investors to gain exposure to key companies driving India’s defence industry.

Business Today Desk
Business Today Desk
  • Updated Sep 24, 2024 12:15 PM IST
NFO alert: Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund, Groww Nifty India Defence ETF. Details hereBaroda BNP Paribas Nifty 200 Momentum 30 Index Fund will open on September 25, 2024, and will close on October 9, 2024.

NFO released: Baroda BNP Paribas Mutual Fund has launched a new fund offer (NFO) Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund. The fund will open on September 25, 2024, and will close on October 9, 2024. The scheme has been designed to tap into the power of momentum investing, offering investors a smart, passive strategy to leverage the top 30 momentum stocks from the Nifty 200 Total Return Index.

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The Baroda BNP Paribas Nifty200 Momentum 30 Index Fund is designed to provide investors with a means to enhance the momentum in their investment portfolios. Its strategy revolves around capitalizing on the momentum of stocks that are already on an upward trend, operating on the belief that these strong performers will sustain their positive trajectory. 

By specifically focusing on the NIFTY 200 constituents - the top 200 companies in terms of market capitalization - the fund's approach is to mitigate risk by steering clear of the smaller, potentially more volatile companies that are considered to be riskier investment options.

Top points

> The fund will track the NIFTY 200 Momentum 30 Index by investing in a portfolio of 30 companies that are part of NIFTY 200 Momentum 30 Index.
> These 30 companies are selected from the NIFTY 200 Index based on their normalized momentum scores.
> The Nifty 200 Momentum 30 Index has consistently outperformed the NIFTY 50 Index by a significant margin since its inception.#
> Assume Rs 1 lakh invested at the inception in April 2005 of the Nifty 200 Momentum 30 Index TRI might have grown to 46 lakhs; while the same amount invested in the Nifty 50 TRI might have grown to 15.5 lakhs. 
> The Nifty 200 Momentum 30 Index giving ~3X higher returns than the Nifty 50 TRI over this time. # Past performance may or may not be sustained in future and is not a guarantee of any future returns
> The NFO period of the fund opens on September 25, 2024, and closes on October 9, 2024.
> Analysing the data over the past 15 years, shows that the Nifty 200 Momentum 30 Index TRI has grown at CAGR of 22% per annum, compared to the 13% per annum of the Nifty 50 TRI.

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“Our Baroda BNP Paribas Nifty200 Momentum 30 Index Fund seeks to offer the best of both worlds—cost-efficiency of passive investing and the potential for outperformance by taking advantage of factor-based investing,” said Suresh Soni, CEO, Baroda BNP Paribas AMC. 

"Factor investing, which is a concept under passive investing, at the core tries to identify the factors that contribute to superior stock performance. Our analysis of factors indicate that momentum factor has one of the best performance track record in India. This approach has shown good results in back-testing, with the Momentum strategy (as represented by the NIFTY 200 Momentum 30 Index) outperforming the Nifty 50 Index consistently,” Soni added.

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Groww Nifty India Defence ETF

Groww Mutual Fund has launched the Groww Nifty India Defence ETF. The scheme, which will be available till October 4, 2024, will allow investors to gain exposure to key companies driving India’s defence industry. The Groww Nifty India Defence will ETF track the Nifty India Defence Index, which includes PSUs such as Bharat Electronics and Hindustan Aeronautics. It captures the performance of top defence companies, offering exposure across large-cap, mid-cap, and small-cap segments.

Groww Mutual Fund said the government has set a production target of Rs 3 lakh crore by FY 2029, alongside a projected investment pipeline of $138 billion from FY 2024 to FY 2026. The defence export target is also ambitious, aiming for Rs 50,000 crore by FY 2029. These initiatives will help Indian firms be as potential leaders in global defence manufacturing. 

The minimum investment in this fund is Rs 500, with increments of Rs 1 thereafter. There is no exit load.

Published on: Sep 24, 2024 12:15 PM IST
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