The New Fund Offer or NFO is open for subscription and will close on September 1 at Rs 10 per unit, applicable only during the NFO period.
The fund will track the Nifty 500 Momentum 50 Index, which comprises the top 50 companies within the Nifty 500 index, selected based on their Normalized Momentum Scores.
The proposed fund brings together two popular investment approaches of flexicap and momentum investing and would be the second fund based on momentum investing strategy in Max Life’s suite of funds, after the Midcap Momentum Index Fund launched on January 24, according to a press release.
It aims to capitalise on the growing interest in flexicap funds, that re-adjust basis market movements, safeguarding investors from cyclical market capitalisation scheme performance. As of June 2024, the benchmark index composition included 60% largecap, 27% midcap, and 13% smallcap stocks, reflecting a well-diversified approach to wealth creation.
The Nifty 500 Momentum 50 Fund is designed for customers inter-alia looking for wealth creation opportunities over the medium to long term. The fund’s “buy high, sell higher” approach aims to capture ongoing price trends, thereby potentially delivering higher returns compared to traditional index investing.”As investment preferences shift towards more dynamic strategies, we are proud to present Max Life’s Nifty 500 Momentum 50 Index Fund. Employing a momentum investing strategy, the fund is designed to cater to the modern customers’ quest for high growth potential across India’s top 500 companies. At Max Life, we remain committed to deliver innovative and robust solutions that align with our customers’ evolving financial goals,” said Sachin Bajaj, Chief Investment Officer, Max Life Insurance.Alongside wealth creation opportunities, the life insurance component provides financial security, safeguarding against unforeseen events and ensuring peace of mind, said the press release.
The fund will be available through various ULIP products, initially including the Online Savings Plan, Shikhsha Plus Super, Flexi Wealth Advantage Plan, and capital guarantee solutions. After the NFO period, the fund will also be offered with Max Life’s Platinum Wealth Plan, Fast Track Super, Flexi Wealth Plus, and Smart Flexi Protect Solution, ensuring broad availability across different customer segments.