Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund
The Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund is a New Fund Offer (NFO) starting on 21st April 2025. This fund aims to mirror the Nifty 500 Multicap Momentum Quality 50 Index, which selects the top 50 stocks from the Nifty 500 universe based on a combination of momentum and quality factor scores. This rule-based approach focuses on companies with strong recent price performance and sound financial characteristics across large-cap, mid-cap, and small-cap segments. Kotak Life Insurance will replicate this index to offer investors exposure to a potentially high-growth portfolio.
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Plans starting from₹1000/month
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund
What is Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund?
The Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund aims to mirror the performance of the Nifty 500 Multicap Momentum Quality 50 Index. This index follows a rule-based investment strategy by selecting the top-performing 50 stocks from the broader Nifty 500 universe. The fund invests in a multi-cap portfolio, comprising approximately the top 10 large-cap, top 15 mid-cap, and top 25 small-cap stocks from their respective segments, which helps to reduce risk in fluctuating equity markets. The underlying index, and consequently the fund, is rebalanced semi-annually (in June and December) to promote winners and demote losers by including stocks with high returns and less volatility and removing those with relatively poor returns. The Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund is available across all product categories offered by Kotak Life, including Investment, Child Education, and Retirement plans.
Highlights of Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund
Particulars
Details
Benchmark
NIFTY 500 Multicap Momentum Quality 50
Risk Profile
High
NFO Launch Date
21st April 2025
NFO Duration
21st April to 5th May 2025
Current NAV
₹10
Minimum Investment
₹1,900 per month
Reasons Why You Should Invest in Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund
Below are the reasons why you should invest in Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund:
High Potential Returns: The NIFTY 500 Multicap Momentum Quality 50 Index has demonstrated strong historical performance. As of March 28, 2025, it had a 5-year return of 28.3%, which was the highest among the compared Nifty indices including the NIFTY 200, NIFTY 50, NIFTY 100, and NIFTY 500. With this return, an investment of ₹100 in funds based on this index grew to ₹569 over a 10-year period.
Rule-Based Investment Strategy: The index follows a rule-based approach by investing in the top-performing 50 stocks out of the Nifty 500 universe. These stocks are selected based on a combination of momentum and quality factor scores.
Multi-Cap Diversification: The index invests in a diversified portfolio of stocks across market capitalizations, including large-cap, mid-cap, and small-cap companies. It selects approximately the top 10 large-cap, top 15 mid-cap, and top 25 small-cap stocks from their respective universes. This mandatory inclusion of large-, mid-, and small-caps reduces risk significantly in fluctuating equity markets.
What is NIFTY 500 Multicap Momentum Quality 50?
The NIFTY 500 Multicap Momentum Quality 50 index is designed to track the performance of large-cap, mid-cap, and small-cap stocks. The selection of these stocks is based on a combination of their momentum and quality factor scores. This index aims to identify companies that have shown strong recent price performance and exhibit sound financial characteristics.
Here's how the index is constructed:
Universe of Stocks: The eligible universe consists of stocks that are part of the Nifty 500 index.
Momentum Score: The momentum score for each company is calculated using its 6-month and 12-month price return, adjusted to account for volatility. This focuses on stocks that have performed well in the recent past.
Quality Score: The quality score for each company is determined by analyzing its return on equity (ROE), financial leverage (Debt/Equity Ratio), and earnings per share (EPS) growth variability over the previous 5 years. This factor aims to identify financially stable companies with long-term growth potential and lower volatility.
Stock Selection: The index selects the top 50 stocks based on an aggregate percentile score derived from the combination of their momentum and quality scores within the eligible universe. This selection process results in a portfolio comprising approximately top 10 large-cap, top 15 mid-cap, and top 25 small-cap stocks from their respective universes.
Weighting: The weight of each stock in the index is determined by multiplying its free-float market capitalization with its composite momentum-quality score. Individual stock weights are capped at 5% at the time of index rebalancing. This weighting methodology leads to a tilt-weighted portfolio.
Rebalancing: The index is rebalanced semi-annually in June and December. The data used for rebalancing is as of the last trading day of May and November, respectively. This semi-annual rebalancing helps to "promote winners" (stocks with high returns and less volatility) and "demote losers" (stocks with relatively poor returns or high volatility).
Index Variant: There is also a Nifty 500 Multicap Momentum Quality 50 Total Returns Index variant, which accounts for dividend reinvestments in addition to price changes.
Launch and Base Value: The index was launched on April 01, 2005, with a base date of the same day and a base value of 1000.
Governance: The index is managed by a professional team with a three-tier governance structure.
NIFTY 500 Multicap Momentum Quality 50 Performance With Other Indices
Index
5-Year Return
Return Since Inception (RSI)
NIFTY 500 Multicap Momentum Quality 50 Index
28.3%
21.5%
NIFTY 200
25.2%
14.3%
NIFTY 50
23.6%
11.3%
NIFTY 100
23.8%
16.9%
NIFTY 500
26.2%
12.3%
The returns are as of 28th March 2025
Sector Representation of NIFTY 500 Multicap Momentum Quality 50
Sector
Sector Weight
Capital Goods
27.07%
Information Technology
24.07%
Financial Services
10.09%
Fast Moving Consumer Goods
8.50%
Automobile and Auto Components
5.82%
Chemicals
5.28%
Consumer Services
5.27%
Healthcare
5.04%
Consumer Durables
4.72%
Textiles
2.68%
Oil, Gas & Consumable Fuels
0.89%
Services
0.57%
Companies of NIFTY 500 Multicap Momentum Quality 50
How to Buy Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund from Policybazaar?
To buy the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund from Policybazaar, follow these steps:
Step 1: Fill in your name and contact number in the form on this page to get started.
Note: Your details are kept confidential and will only be used to customize your benefits.
Step 2: You can also visit the plans just by clicking view plans below
Step 3: Once logged in, you'll be prompted to fill in your city, age, and annual income in the provided form. This information will be used to check the personalised benefits of the plans.
Step 4: After providing your personal information, you'll be presented with Kotak Life Investment Plans on a blue and red card. Select the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund option that best suits your needs from the following option:
Step 5: In the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund, click the "Get Details" tab for more information.
You can also get FREE expert consultation; just click on the talk to an expert button.
Step 6: Review plan details carefully. Once satisfied, click on the "Proceed" button and follow the prompts on the screen to move forward with the purchase.
Step 7: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred payment method for your investment.
Step 8: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.
Step 9: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
What are the Benefits of Purchasing the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund from Policybazaar?
Investing through Policybazaar offers a range of valuable benefits:
Convenience: Invest online in the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund via Policybazaar to avoid physical bank or agent visits.
Comparison: Compare multiple investment plans, including new funds, to make informed decisions and find the best market deals.
Expert Guidance: Access financial experts who help select the right NFO plan based on your needs and goals.
Tax Benefits: Maximize tax advantages under Section 80C and Section 10(10D) of the Income Tax Act through investments with Policybazaar.
FAQs
What is the Nifty 500 Multicap Momentum Quality 50 Index's performance history?
Index Returns (%)
QTD
YTD
1 year
5 years
Since Inception
Price Returns
-15.24
-15.24
-5.52
26.96
19.98
Total Returns
-14.98
-14.98
-4.46
28.27
21.49
# QTD, YTD and 1-year returns are absolute returns. Returns for greater than one year are CAGR returns
What is the investment strategy of the underlying index?
The underlying index follows a rule-based investing strategy by investing in the top-performing 50 out of the top 500 stocks in the index. It focuses on companies that have performed well over the last 6 and 12 months and are financially stable, less volatile, and have long-term growth potential.
What kind of stocks does the underlying index invest in?
The index invests in a multi-cap portfolio, comprising approximately the top 10 large-cap, top 15 mid-cap, and top 25 small-cap stocks from their respective universes.
What is the time period for Kotak Life Nifty 500 Multicap Momentum Quality 50 New Fund Offering (NFO) period?
The NFO period for the Kotak Life Nifty 500 Multicap Momentum Quality 50 Fund is from 21st April – 5th May. The Issuance Date also falls within this period. The NAV will be Rs. 10 during the NFO period till 5th May.
Which product categories of Kotak Life offer this fund?
This fund is Available Across All Product Categories offered by Kotak Life, including Growth, Child, and Retirement plans.
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *Past 10 Year annualised returns as on 01-04-2025 *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.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealthEarn 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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