What is the NIFTY 500 Multicap Momentum Quality 50 Index?
The NIFTY 500 Multicap Momentum Quality 50 Index is a stock market index designed to track the performance of 50 high-quality and high-momentum stocks selected from the NIFTY 500 Index. It represents a diversified portfolio across large-cap, mid-cap, and small-cap segments. 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.
Highlights of NIFTY 500 Multicap Momentum Quality 50 Index
| Particulars |
Details |
| Launch Date |
September 04, 2024 |
| No. of Constituents |
50 |
| Base Date |
April 01, 2005 |
| Base Value |
1000 |
| Calculation Frequency |
End of day |
| Index Rebalancing |
Semi-Annually |
| Index Governance |
A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee. |
[Source: nseindia.com] Data updated as of December 16, 2024.
Performance of NIFTY 500 Multicap Momentum Quality 50 Index
| Index Name |
5 Year Returns |
10 Year Returns |
| NIFTY Midcap Momentum Quality |
30.3% |
22.9% |
| NIFTY 50 |
16.4% |
12.4% |
| NIFTY 100 |
16.9% |
12.8% |
| NIFTY Midcap 150 |
28.4% |
18.8% |
| NIFTY Smallcap 250 |
31.2% |
16.8% |
| NIFTY 500 |
19.7% |
14.0% |
[Source: nseindia.com] Data updated as of December 16, 2024.
Sectors Included in the NIFTY 500 Multicap Momentum Quality 50 Index
| Top Sectors |
Weightage of Invested Assets |
| Capital Goods |
25.88% |
| Financial Services |
12.15% |
| Automobile and Auto Components |
10.54% |
| Oil, Gas & Consumable Fuels |
7.95% |
| Healthcare |
6.18% |
| Fast Moving Consumer Goods |
5.84% |
| Consumer Durables |
5.38% |
| Chemicals |
3.81% |
| Information Technology |
2.91% |
| Metals & Mining |
2.53% |
| Construction |
2.01% |
| Consumer Services |
0.29% |
| Services |
0.14% |
[Source: nseindia.com] Data updated as of December 16, 2024.
Returns of the NIFTY 500 Multicap Momentum Quality 50 Index
| Index Name |
5 Year Returns |
10 Year Returns |
| NIFTY Midcap Momentum Quality |
30.3% |
22.9% |
| NIFTY 50 |
16.4% |
12.4% |
| NIFTY 100 |
16.9% |
12.8% |
| NIFTY Midcap 150 |
28.4% |
18.8% |
| NIFTY Smallcap 250 |
31.2% |
16.8% |
| NIFTY 500 |
19.7% |
14.0% |
[Source: nseindia.com] Data updated as of December 16, 2024.
Is it Smart to Invest in the NIFTY 500 Multicap Momentum Quality 50 Index?
NIFTY 500 Multicap Momentum Quality 50 Index can be a smart investment option because:
-
Diversification Across Market Caps
-
This index covers large-cap, mid-cap, and small-cap stocks, providing exposure to a broad market spectrum.
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Ensures a balanced portfolio by reducing over-reliance on a single market cap category.
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Focus on Quality Stocks
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Comprises companies with strong fundamentals, such as stable earnings and robust financial health.
-
Reduces the risk of investing in volatile or underperforming businesses.
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Momentum-Driven Selection
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Includes stocks with positive price momentum, targeting companies that have performed well recently.
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Aims to capture market trends, which can lead to short-term gains.
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Index-Based Investment
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Offers a passive investment strategy, reducing the need for active stock picking.
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Low expense ratios make it a cost-effective choice for long-term investors.
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Potential for Growth
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Combines the benefits of quality and momentum factors, which historically deliver superior risk-adjusted returns.
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A multicap strategy increases exposure to emerging high-growth companies in mid and small caps.
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Ideal for Long-Term Investors
NIFTY 500 Multicap Momentum Quality 50 Index Fundamentals
| P/E* |
P/B** |
Dividend Yield |
| 22.04 |
5.27 |
1.48 |
*P/E: Price-to-Earnings Ratio **P/B: Price-to-Book Ratio *Data updated as of November 29, 2024.
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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