Motilal Oswal AMC unveils Nifty200 ETF

Hyderabad: Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Nifty200 Momentum 30 ETF (exchange traded fund) and Motilal Oswal Nifty200 Momentum 30 Index Fund.

These are open ended schemes replicating or tracking the performance of Nifty200 Momentum 30 Index. The momentum factor refers to the tendency of winning stocks to continue performing well in the near term. Globally factor investing and particularly Momentum Factor has caught investor attention over last decade. Navin Agarwal, MD & CEO, MOAMC, said: "With an objective to bring products in accordance to the evolving needs of the investors, MOAMC will be introducing a slew of the funds in the factor investing segment which will be suitable for investors looking for exposure to factors."

Amongst the key attributes of the index fund is its ability to catch market trends early with dynamic sector rotation which has largely been skewed towards Large caps. The Nifty200 Momentum 30 index selects top 30 companies with highest 6 month and 12 month 'momentum' as defined in index methodology. The constituents need to be part of Nifty 200 index and should also be available for trading in F&O segment with a minimum listing history of one year. The maximum weight of stock is capped at 5% and index gets rebalanced in June and December. The NFO will open on January 21, 2022 and closes on February 4, 2022 and allocation will be 10th February 2022.