What is HDFC Life Midcap Momentum Fund?
The HDFC Life Midcap Momentum Fund is a newly launched New Fund Offering (NFO) offered by HDFC Life Insurance. It starts on 16th March till 31st March 2024. It focuses on investing in mid-cap stocks with high growth potential.
The aim is long-term capital appreciation by investing in the top 50 mid-cap companies based on momentum score. HDFC Life Midcap Momentum Fund follows a momentum investing strategy, targeting stocks with strong recent performance expected to continue growing. It tracks the Nifty Midcap 150 Momentum 50 benchmark index for stock selection.
What is the NIFTY Midcap 150 Momentum 50 Index?
The NIFTY Midcap 150 Momentum 50 Index is a stock market index that tracks the performance of the top 50 mid-cap companies in India. These companies are specifically chosen based on a momentum score that considers their price return over the past 6 and 12 months, adjusted for volatility.
Here are some key features of the index:
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It selects the top 50 out of 150 mid-cap stocks.
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Selection is based on a momentum score that considers both price return and volatility.
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The weightage of each stock considers both its momentum score and market capitalization.
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Capping is applied to prevent any single stock from dominating the index.
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Rebalancing happens twice a year, in June and December.
Reasons Why You Should Invest in HDFC Life Midcap Momentum Fund
Investing in HDFC Life Midcap Momentum Fund can be a smart move for several reasons:
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Proven Performance: With a 5-year benchmark return of 31.3%, this fund has demonstrated its ability to deliver consistent growth over the long term.
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Investment Strategy: By investing in the top 50 midcap companies based on momentum scores, the strategy used by this fund leverages market trends and eliminates any subjective bias that may be introduced by a fund manager, providing a transparent and systematic approach to investment.
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Personalized Investment Plans: Investors can choose from various flexible investment plan options available at Policybazaar with low commitment starting from ₹2000 per month, ensuring accessibility and convenience.
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No Hidden Charges: We at Policybazaar ensure full transparency and makes sure that all fees and expected returns are clearly stated, leaving no room for surprises or hidden costs.
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Exclusive Offer: Policybazaar investors have the opportunity to enter the market at the NAV of ₹10, availing themselves of a proven fund with a strategy tailored for long-term growth.
Performance of NIFTY Midcap 150 Momentum 50 Index
| Index Name |
3-Years Returns |
5-Years Returns |
10-Years Returns |
NIFTY Midcap 150
Momentum 50 |
35.5% |
31.2% |
27.4% |
| NIFTY Midcap 150 |
26.5% |
24.4% |
21.7% |
| NIFTY Smallcap 250 |
29.5% |
24.9% |
19.9% |
| NIFTY 50 |
14.8% |
15.3% |
13.4% |
People also read: HDFC Life NIFTY 200 Alpha 30 Fund NFO
Why is HDFC Life Midcap Momentum Fund a Smart Investment?
A Midcap Momentum Index Fund is a good fit, and here's why:
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High Growth Potential: Midcap companies, on the rise, can offer big growth due to expansion plans and taking market share.
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Diversification: Get exposure to a variety of mid-cap stocks, reducing risk compared to a single company.
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Riding the Momentum: The fund tracks companies with upward price trends, aiming for higher returns than the market during bull runs.
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Active Management: Active management allows the fund manager to adjust the portfolio based on changing market conditions and momentum dynamics, potentially enhancing performance.
What are the Benefits of Purchasing the HDFC Life Midcap Momentum Fund from Policybazaar?
Investing through Policybazaar offers a range of valuable benefits:
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Convenience: With Policybazaar, you can invest in the HDFC Life Momentum Index Fund online, removing the need for physical visits to banks or insurance agents.
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Comparison: Policybazaar is a platform that provides you an option to compare various plans, including new funds. This way, you have all the necessary information to make an informed decision and secure the best investment deals available in the market.
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Expert Guidance: Policybazaar has a team of financial experts who are ready to help you select the most suitable NFO plan based on your specific financial requirements and goals.
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Tax Advantages: Investing in the HDFC Life Midcap Momentum Index Fund through Policybazaar can provide you tax benefits. The platform helps you understand and navigate the possible tax benefits associated with your investment, helping you in your financial planning.
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Easy Redemption: When redeeming your NFO investment, Policybazaar provides a seamless process, subject to the terms and conditions specified in the NFO agreement.
How to Buy HDFC Life Midcap Momentum Fund from Policybazaar?
To buy HDFC Life Midcap Momentum Fund from Policybazaar, follow these steps:
Step 1: Go to the Policybazaar website or open the Policybazaar app. Log into your existing account or create a new one if you don't have an account yet.
Step 2: Once logged in, you'll be prompted to fill in your name, city, age, and contact numbers in the provided form. This information will be used to check the personalized benefits of the plans.
Step 3: After providing your personal information, you'll be presented with a list of available HDFC Life Plans. Select the HDFC Life Midcap Momentum Fund option that best suits your needs from the following options:
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HDFC Life Capital Guarantee Solution
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HDFC Life Click2Wealth- Golden Years
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HDFC Life Click2Invest
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HDFC Sampoorn Nivesh – Classic Waiver
Step 4: If you're interested in the Midcap Momentum Fund, click on the "Get Details" tab for more information.
You can also get FREE expert consultation, just click on talk to expert button.
Step 5: Review the details of the plan carefully. Once you're satisfied, click on the "Proceed" button and follow the prompts displayed on the screen to move forward with the purchase.
Step 6: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred mode of payment for your investment.
Step 7: Provide your KYC (Know Your Customer) details as required. This step is essential for regulatory compliance.
Step 8: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
Investment Methodology Nifty Mid Cap 150 Momentum 50 Index
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Top 50 Stocks identified by an algorithm
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Follows rule-based investing
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Invest in stocks that are doing well and are likely to keep doing well while eliminating the ones that aren't doing as well.
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NSE declares the index constituents & HDFC life just replicates the index.
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The index is rebalanced every 6 months in June & December
Excellent Historical Returns:
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5 Year returns: 31.2% &
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10 Year returns: 27.4%
Sectors Included on Nifty Mid Cap 150 Momentum 50 Index
| Sector Representation |
Weight |
| Financial Services |
29.2% |
| Healthcare |
19.5% |
| Capital Goods |
18.2% |
| Realty |
9.00% |
| Metals & Mining |
6.30% |
| Information Technology |
5.30% |
| Chemicals |
3.70% |
| Automobile & Auto Components |
3.50% |
| Power |
3.30% |
Generate wealth Earn 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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