How is the Nifty 500 Multicap Momentum Quality 50 Index constructed?

The index is built using stocks from the Nifty 500 universe that exhibit strong momentum and quality indicators, ensuring a diverse mix across market capitalizations.

What factors are considered in selecting stocks for the Nifty 500 Multicap Momentum Quality 50 Index?

Stocks are chosen based on their momentum (past price performance) and quality (financial strength, profitability, etc.) to ensure long-term stability.

Is the Nifty 500 Multicap Momentum Quality 50 Index suitable for long-term investment?

Yes, the index focuses on quality and momentum, making it a good option for long-term investors looking for growth.

How does the Nifty 500 Multicap Momentum Quality 50 Index differ from the Nifty 50?

Unlike the Nifty 50, which focuses on the top 50 large-cap stocks, the Nifty 500 Multicap Momentum Quality 50 Index includes stocks across all market caps based on quality and momentum.

Who manages the Nifty 500 Multicap Momentum Quality 50 Index?

The National Stock Exchange (NSE) of India manages and maintains the index.

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Nifty 500 Multicap Momentum Quality 50 Index

The Nifty 500 Multicap Momentum Quality 50 Index is designed to track the performance of 50 high-quality stocks from the Nifty 500 index. These stocks are selected based on their momentum and quality factors, ensuring a balanced mix of large, mid, and small-cap companies. The index focuses on capturing long-term growth potential while reducing volatility.

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What is the Nifty 500 Multicap Momentum Quality 50 Index?

The Nifty 500 Multicap Momentum Quality 50 Index is designed to track the top 50 stocks from a diverse range of large, mid, and small-cap stocks based on momentum and quality metrics. Stocks are chosen based on their momentum (price performance) and quality (financial stability). The index is rebalanced semi-annually to ensure optimal performance and is governed by a professional team following a robust three-tier governance framework.

The Nifty 500 Multicap Momentum Quality 50 Index is ideal for long-term investors seeking growth opportunities with a disciplined and factor-based investment approach.

Information About NIFTY 500 Multicap Momentum Quality 50 Index

Particulars	Details
Objective	Aims to track the performance of 50 high-quality stocks across large, mid, and small caps, selected based on momentum and quality factors from the Nifty 500 universe.
Launch Date	September 04, 2024
No. of Constituents	50
Base Date	April 01, 2005
Base Value	1000
Calculation Frequency	Real-Time
Methodology	Tilt Weighted
Index Rebalancing	Semi-Annually

[Source: nseindia.com]
Data updated as of 27 January 2025.

Key Features of Nifty 500 Multicap Momentum Quality 50 Index

Following are some of the key features of the Nifty 500 Multicap Momentum Quality 50 Index:

Scoring Method:
- Momentum Score: Calculated using 6-month and 12-month price returns, adjusted for volatility.
- Quality Score: Evaluated using return on equity (ROE), financial leverage (Debt/Equity Ratio), and earnings (EPS) growth variability over the last 5 years.
Stock Weighting: Combines composite momentum-quality scores and free-float market capitalization, with a cap of 5% weight per stock during rebalancing.
Rebalancing Frequency: The index is rebalanced semi-annually to maintain relevance.
Use Cases: Suitable for benchmarking fund portfolios, launching index funds, ETFs, and structured products.
Index Variant: The Nifty 500 Multicap Momentum Quality 50 Total Returns Index provides a comprehensive return perspective.

Performance of NIFTY 500 Multicap Momentum Quality 50 Index

Index Name	5-Year Returns	10-Year Returns
NIFTY 500 Multicap Momentum Quality 50 Index	30.7%	22.9%
NIFTY Midcap 150 Index	24.9%	17.5%
NIFTY Smallcap 250 Index	25.9%	15.0%
NIFTY 500 Index	17.4%	12.8%
NIFTY 50 Index	14.9%	11.4%

[Source: nseindia.com]

*Returns as of 27 January 2025.

Constituent Stocks of the NIFTY 500 Multicap Momentum Quality 50 Index

Company’s Name	Weightage (%)
Coforge Ltd.	5.09
Persistent Systems Ltd.	5.05
HCL Technologies Ltd	5.05
Trent Ltd.	5.05
Dixon Technologies (India) Ltd	4.98
Bharat Electronics Ltd.	4.97
Bajaj Auto Ltd.	4.96
Tata Consultancy Services Ltd.	4.91
Varun Beverages Ltd.	4.60
Hindustan Aeronautics Ltd.	4.06

[Source: nseindia.com]
Data updated as of 27 January 2025.

Sectoral Representation of the NIFTY 500 Multicap Momentum Quality 50 Index

Top Sectors	Weightage of Invested Assets
Information Technology	28.05%
Capital Goods	26.07%
Financial Services	10.80%
Fast Moving Consumer Goods	8.73%
Automobile & Auto Components	5.96%
Consumer Durables	4.76%
Consumer Services	4.61%
Healthcare	4.30%
Chemicals	3.57%
Textiles	2.12%
Oil, Gas, & Consumable Fuels	0.53%
Services	0.50%

[Source: nseindia.com]
Data updated as of 27 January 2025.

NIFTY 500 Multicap Momentum Quality 50 Index Fundamentals

P/E*	P/B**	Dividend Yield
48.57	14.24	0.9

*P/E: Price-to-Earnings Ratio

**P/B: Price-to-Book Ratio

Data updated as of 27 January 2025.

Nifty 500 Multicap Momentum Quality 50 Index Methodology

Eligibility Criteria
- Stocks must be part of or set to join the NIFTY 500 Index at the time of review.
- Non-F&O stocks are excluded if they hit the price band (upper or lower circuit) on 20% or more trading days in the past six months.
- Stocks with pledged promoter shares exceeding 20% are ineligible.
- Bottom 10% of stocks based on turnover ratio or 6-month average daily turnover within large-cap, mid-cap, or small-cap segments are excluded.
Stock Selection
- The top 50 stocks are chosen based on their aggregate percentile score within the eligible universe of segments (large-cap, mid-cap, small-cap).
- Stock weights in the index are determined by multiplying their free float market cap with their composite factor score.
Index Rebalancing
- Conducted semi-annually in June and December using data up to May 31 and November 30, respectively.
- Average data for the preceding six months is used, and a 4-week prior notice is issued to the market.
Governance
- Managed by a professional team under a three-tier governance structure, including the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.

Benefits of Investing in the NIFTY 500 Multicap Momentum Quality 50 Index

NIFTY 500 Multicap Momentum Quality 50 Index can be a smart investment option because of the following reasons:

Diversification Across Market Caps
- This index covers large-cap, mid-cap, and small-cap stocks, providing exposure to a broad market spectrum.
- Ensures a balanced portfolio by reducing over-reliance on a single market cap category.
Focus on Quality Stocks
- Comprises companies with strong fundamentals, such as stable earnings and robust financial health.
- Reduces the risk of investing in volatile or underperforming businesses.
Momentum-Driven Selection
- Includes stocks with positive price momentum, targeting companies that have performed well recently.
- Aims to capture market trends, which can lead to short-term gains.
Index-Based Investment
- Offers a passive investment strategy, reducing the need for active stock picking.
- Low expense ratios make it a cost-effective choice for long-term investors.
Potential for Growth
- Combines the benefits of quality and momentum factors, which historically deliver superior risk-adjusted returns.
- A multi-cap strategy increases exposure to emerging high-growth companies in mid and small-caps.
Ideal for Long-Term Investors
- Best suited for individuals with a high-risk appetite and a long investment horizon.
- Provides a balanced approach to diversification and growth potential.

How Can You Invest in Nifty 500 Multicap Momentum Quality 50 Index Fund through Policybazaar?

Investing in this fund through Policybazaar is easy and can be done in a few steps. Follow the instructions below to make your investment seamlessly.

Step 1- Enter Your Details: Fill in your name and contact number in the form provided.

NOTE: Your personal information is safe and will only be used to tailor plan options for you.

Step 2- Add Basic Information: Provide additional details such as your city, age, and name for a more personalized plan comparison.

Step 3- Choose Bajaj Allianz Investment Plans: Look for investment options under Bajaj Allianz Life Insurance that is currently offering the Bajaj Allianz NIFTY 500 Multicap Momentum Quality 50 Index Fund through a New Fund Offer (NFO). The starting NAV of the fund is ₹10 during the NFO period.

Step 4- Click "Invest Now": Select the "Invest Now" button and follow the on-screen prompts to continue with your investment.

Step 5- Complete KYC and Payment: Provide the required KYC documents and proceed with the payment process to finalize your purchase.

Step 6- Receive Confirmation: Once your payment is successful, you will receive a confirmation message verifying your investment.

FAQs

What is the Nifty 500 Multicap Momentum Quality 50 Index?

The Nifty 500 Multicap Momentum Quality 50 Index tracks the performance of the top 50 stocks from the Nifty 500, selected based on momentum and quality factors.
How is the Nifty 500 Multicap Momentum Quality 50 Index constructed?

The index is built using stocks from the Nifty 500 universe that exhibit strong momentum and quality indicators, ensuring a diverse mix across market capitalizations.
What factors are considered in selecting stocks for the Nifty 500 Multicap Momentum Quality 50 Index?

Stocks are chosen based on their momentum (past price performance) and quality (financial strength, profitability, etc.) to ensure long-term stability.
What are the benefits of investing in the Nifty 500 Multicap Momentum Quality 50 Index?

The index offers diversified exposure to high-quality, momentum-driven stocks, potentially providing better returns than the broader market.
Is the Nifty 500 Multicap Momentum Quality 50 Index suitable for long-term investment?

Yes, the index focuses on quality and momentum, making it a good option for long-term investors looking for growth.
How does the Nifty 500 Multicap Momentum Quality 50 Index differ from the Nifty 50?

Unlike the Nifty 50, which focuses on the top 50 large-cap stocks, the Nifty 500 Multicap Momentum Quality 50 Index includes stocks across all market caps based on quality and momentum.
Who manages the Nifty 500 Multicap Momentum Quality 50 Index?

The National Stock Exchange (NSE) of India manages and maintains the index.

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¶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).