Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund :If you are looking to invest in an innovative scheme of mutual fund, then you have a good opportunity. Baroda BNP Paribas Mutual Fund has launched its New Fund Offer (NFO) Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund. This new fund offer is opening on 25 September 2024 and will close on 9 October 2024. This is an open-ended equity scheme, which will track the Nifty 200 Momentum 30 Total Return Index.
This scheme is designed to leverage the power of momentum investing. The scheme will select the top 30 stocks from the Nifty 200 Total Return Index based on momentum for investment. Thus, it provides investors with a smart and passive strategy to achieve better returns.
NPS: NPS also has a facility like SIP top up, pension will increase 3 times on retirement, this is the calculation
Features of NFO
The fund will track the Nifty 200 Momentum 30 Index by investing in a portfolio of 30 companies which will be part of the Nifty 200 Momentum 30 Index.
These 30 companies are selected based on their overall momentum score from the Nifty 200 index.
The Nifty 200 Momentum 30 Index has consistently outperformed the Nifty 50 Index since its inception.
One can invest a minimum of Rs 1000 in this scheme and any amount in multiples of Rs 1 thereafter.
This NFO is opening on September 25, 2024 and investments can be made till October 9, 2024.
SIP Return: 21 years old 3 mutual fund schemes, annualized return up to 18%, value of 10 thousand SIPs increased to 1.5 to 2 crores
Strong performance of Nifty 200 Momentum 30 TRI
Analysis of the last 15 years of data shows that the Nifty 200 Momentum 30 Index TRI has grown at a CAGR of 22% per annum, while the Nifty 50 TRI has grown at a CAGR of 13% per annum. (Source: nseindia.com, data till 31 August 2024).
Nifty 200 Momentum 30 TRI (%CAGR)
Return in 1 Year : 68.91%
Return in 3 years: 25.38%
Return in 5 years: 30.53%
Return in 10 years: 23.04%
Return in 15 years: 21.85%
Return since inception: 21.80%
NFO: Opportunity to invest in Mirae Asset Nifty PSU Bank ETF, you will get the benefit of the rise in the stock of government banks, what is the specialty of this ETF
Nifty 50 TRI (%CAGR)
Return in 1 Year: 32.64%
Return in 3 years: 15.17%
Return in 5 years: 19.39%
Return in 10 years: 13.61%
Return in 15 years: 13.28%
Return since inception: 15.19%
In this sense, if an investor had invested Rs 1 lakh in Nifty 200 Momentum 30 Index TRI at the start of April 2005, then the value of his investment would have increased to Rs 46 lakh now. Whereas if someone had invested Rs 1 lakh in Nifty 50 TRI at the same time, then its value would have increased to Rs 15.5 lakh now. That is, Nifty 200 Momentum 30 Index has given about 3 times more return than Nifty 50 TRI during this period.
(Source: Niftyindices.com, MFI Explorer. Data as on August 31, 2024. Daily rolling returns are calculated from April 3, 2005 to August 31, 2024.)
# Disclaimer :Baroda BNP Paribas Mutual Fund does not guarantee returns on investments in the scheme. Past performance may or may not be sustained and future returns are not guaranteed. Returns are exclusive of expenses and taxes, if any. Nifty 50 is a broad market index and is also recommended by AMFI as an additional benchmark for all equity schemes, which has been used for comparison.
Mutual Fund Return: 2 crores made with 1000 rupees monthly SIP, HDFC Mutual Fund scheme did this amazing job
Momentum-based strategy for investing
Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund will provide investors with an opportunity to add momentum to their portfolio. The fund’s momentum-based strategy aims to target stocks with favorable conditions, with the assumption that these stocks are already performing well and will continue to do so in the future. The fund will focus on the top 200 companies in terms of market capitalization and select 30 stocks with better momentum from them. The fund aims to reduce investors’ exposure to smaller companies, which are more volatile and risky. This strategy also reduces the risk associated with investors.
Return: 10 most economical mutual funds, top the return chart, money is growing 24 to 30% annually in SIP
Better returns from momentum strategy
Suresh Soni, CEO, Baroda BNP Paribas AMC, says that our Baroda BNP Paribas Nifty 200 Momentum 30 Index Fund seeks to offer the best of both the cost-efficiency of passive investing and the potential for outperformance by leveraging factor-based investing. Factor investing, which is a concept under passive investing, basically tries to identify factors that contribute to the outperformance of a stock. Analysis of these factors indicates that the track record of performance of the momentum factor is one of the best performing track records in India. This strategy has given good results in back-testing, as well as the momentum strategy (as represented by the Nifty 200 Momentum 30 Index) has consistently outperformed the Nifty 50 index.
