What is the MidSmallCap 400 Momentum Quality 100 Index?
The MidSmallCap 400 Momentum Quality 100 Index is a specialized index designed to capture the performance of high-quality, high-momentum stocks within the mid and small-cap segments of the market. It selects stocks from the Nifty MidSmallcap 400 index, focusing on companies that meet stringent criteria for liquidity, turnover, and promoter stability, making it an appealing option for investors seeking quality growth in the mid-small cap space.
Key Features of the MidSmallCap 400 Momentum Quality 100 Index
Below are the key features of the MidSmallCap 400 Momentum Quality 100 Index:
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Momentum: The index selects stocks based on their 6-month and 12-month price returns, adjusted for volatility.
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Quality: Stocks are chosen based on their financial health, including Return on Equity (ROE), financial leverage (Debt/Equity Ratio), and Earnings Per Share (EPS) growth variability over the past 5 years.
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Index Composition:
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The index comprises 100 stocks from the Nifty MidSmallcap 400 index.
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It includes 50 stocks from the Midcap universe (Nifty Midcap 150) and 50 from the Smallcap universe (Nifty Smallcap 250).
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Stock weights are determined by a combination of momentum-quality score and free-float market capitalization, with a cap of 5% per stock.
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Rebalancing: The index is rebalanced semi-annually to ensure it aligns with its selection criteria.
Highlights of the MidSmallCap 400 Momentum Quality 100 Index
| Particulars |
Details |
| Launch Date |
February 08, 2024 |
| No. of Constituents |
100 |
| Base Date |
April 01, 2005 |
| Base Value |
1000 |
| Calculation Frequency |
End of day |
| Methodology |
Alpha Based Weighting |
| Alpha Calculation |
Trailing one-year prices adjusted for corporate actions, ranked in descending order. |
| 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 November 12, 2024.
Performance of MidSmallCap 400 Momentum Quality 100 Index
| Index Name |
3-Year Return |
5-Year Return |
10-Year Return |
| NIFTY MidSmallCap 400 Momentum Quality 100 |
23.5% |
33.6% |
22.5% |
| NIFTY MidSmallCap 400 |
21.1% |
28.9% |
18.1% |
| NIFTY 50 |
11.0% |
16.3% |
12.4% |
| NIFTY Midcap 150 |
20.7% |
28.2% |
18.9% |
| NIFTY Smallcap 250 |
21.6% |
30.3% |
16.3% |
[Source: nseindia.com]Data updated as of November 12, 2024.
Which are the Constituent Stocks of the MidSmallCap 400 Momentum Quality 100 Index?
| Company's Name |
Weightage (%) |
| Dixon Technologies (India) Ltd |
4.46% |
| Cummins India Ltd. |
4.39% |
| CG Power and Industrial Solutions Ltd. |
3.13% |
| HDFC Asset Management Company Ltd. |
2.79% |
| Voltas Ltd. |
2.54% |
| Persistent Systems Ltd. |
2.51% |
| Oil India Ltd. |
2.30% |
| Torrent Power Ltd. |
2.09% |
| Rail Vikas Nigam Ltd. |
2.06% |
| Coforge Ltd. |
2.00% |
[Source: nseindia.com] Data updated as of October 31, 2024.
What are the Sectors Included in the MidSmallCap 400 Momentum Quality 100 Index?
| Top Sectors |
Weightage of Invested Assets |
| Capital Goods |
25.88% |
| Financial Services |
12.15% |
| Information Technology |
9.89% |
| Healthcare |
8.19% |
| Consumer Durables |
7.35% |
| Oil, Gas & Consumable Fuels |
6.11% |
| Metals & Mining |
6.03% |
| Construction |
4.88% |
| Chemicals |
4.82% |
| Power |
3.83% |
| Automobile and Auto Components |
3.09% |
| Services |
2.23% |
| Fast Moving Consumer Goods |
2.13% |
| Realty |
1.32% |
| Consumer Services |
0.82% |
| Telecommunication |
0.79% |
| Media, Entertainment & Publication |
0.48% |
[Source: nseindia.com] Data updated as of October 31, 2024.
What Are the Returns of the MidSmallCap 400 Momentum Quality 100 Index?
| Index Returns (%) |
QTD |
YTD |
1 year |
5 years |
Since Inception |
| Price Returns |
-6.08 |
25.12 |
49.01 |
28.55 |
22.26 |
| Total Returns |
-6.07 |
26.11 |
50.49 |
29.82 |
23.85 |
# QTD, YTD and 1-year returns are absolute returns. Returns for greater than one year are CAGR returns
Is it Smart to Invest in the MidSmallCap 400 Momentum Quality 100 Index Benchmark?
The MidSmallCap 400 Momentum Quality 100 Index Benchmark offers an exciting opportunity for investors seeking growth and diversification in their portfolios. Here's why:
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Focus on Quality and Momentum: The index carefully selects stocks based on a combination of momentum and quality factors. This means it targets companies with strong recent performance and sound financial fundamentals. This dual focus can potentially lead to superior long-term returns.
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Exposure to High-Growth Potential: Mid and small-cap stocks often represent companies with significant growth potential. By investing in this index, you gain exposure to a diverse range of businesses that may be poised for significant expansion.
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Diversification Benefits: The index comprises 100 stocks across various sectors, reducing concentration risk. This diversification can help mitigate the impact of individual stock volatility, leading to a smoother investment experience.
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Professional Management: Investing in an index fund tied to this benchmark allows you to benefit from professional management. Fund managers actively track the index, rebalancing the portfolio as needed to maintain its composition.
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Cost-Effective Investment: Index funds are generally more cost-effective than actively managed funds. This means you can potentially achieve higher returns with lower expense ratios.
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Tax Efficiency: Index funds often have lower turnover rates compared to actively managed funds. This can lead to lower capital gains taxes over time
MidSmallCap 400 Momentum Quality 100 Index Fundamentals
| P/E* |
P/B** |
Dividend Yield |
| 32.66 |
6.0 |
0.97 |
*P/E: Price-to-Earnings Ratio **P/B: Price-to-Book Ratio *Data updated as of October 31, 2024.
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
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