TATA Nifty Midcap 150 Momentum 50 Index Fund

TATA NIFTY MIDCAP 150 MOMENTUM 50 INDEX FUND: A New Index Fund from TATA AMC to strengthen your Midcap Portfolio

We know about the Nifty 200 Momentum 30 Index Fund, which focuses on 30 stocks with high momentum scores from Nifty top 200 stocks that cover the large market segment.

Tata AMC shifted its focus to the Midcap Index fund and presented us with an NFO which replicates the Nifty Midcap 150 Momentum 50 Index. As the name suggests, the NFO invests in 50 companies with high momentum scores from Nifty Midcap 150 stocks.

Advantages of choosing Nifty Midcap 150 Momentum 50 Index Fund

1. Increased Diversification: Midcap 150 Momentum 50 Index fund invests in 50 companies, whereas the Nifty 200 Momentum 30 Index fund invests in 30 companies. Thus, adding more diversification to the portfolio at the same time, the portfolio is trying to manage the portfolio from over diversification.

2. Higher Room for Returns: Midcap stocks are expected to perform better than large-cap stocks when the markets are bullish. So, if there are going to be any multi-baggers in the Nifty Midcap 150 Index, they will fall into the portfolio of NFO and be expected to give more returns than a large cap Momentum fund.

3. Lower Expenses: The NFO is an index fund and is passively managed; the expense ratio is meagre at just 0.25% if redeemed before 90 days. After 90 days expense ratio is 0.

NFO Details:

Who Should Invest?

1. Investors looking for long-term capital appreciation with a time horizon of minimum 5 years.

2. Investors who are looking to add mid-cap exposure to their portfolio.

3. Investors who can withstand the volatility caused by mid-cap stocks.

4. Investors aiming for higher returns than conventional funds by choosing momentum stocks.

5. Young investors with extended tenure investment ability can opt for SIP in the fund.

Thus, we believe investing in this fund can be an added advantage for existing as well as new investors.

ATS believes a client should be well informed and educated 360 degrees on the aspects of investments.

For detailed discussion on your existing portfolio, financial planning, funds recommendation, and portfolio management services, please write to us at research@adityatrading.com

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Disclaimer: The selection of funds in your portfolio should be completely based on your risk appetite and time horizon of investment; thus if you have any queries on fund selection, please reach us at krishna@adityatrading.com