Max Life Insurance Company has launched the Nifty 500 Momentum 50 Index Fund in the Unit Linked Insurance Plan (ULIP) segment.

This new fund offer (NFO) will remain open until September 1, 2024, with units priced at ₹10 each, applicable only during the NFO period.

Fund overview

The Nifty 500 Momentum 50 Index Fund tracks the Nifty 500 Momentum 50 Index.

This index includes the top 50 companies within the Nifty 500, selected based on their Normalized Momentum Scores.

The fund combines two popular investment strategies: flexicap and momentum investing.

This is Max Life’s second momentum-based fund, following the Midcap Momentum Index Fund launched in January 2024.

The fund aims to capitalise on the growing interest in flexicap funds, which adjust based on market movements, offering protection against the cyclical performance of market capitalisation schemes.

As of June 2024, the benchmark index was composed of 60% large-cap, 27% mid-cap, and 13% small-cap stocks, providing a diversified approach to wealth creation.

Investment strategy

The Nifty 500 Momentum 50 Fund targets investors seeking wealth creation over the medium to long term.

The fund follows a “buy high, sell higher” approach, aiming to capture ongoing price trends.

This strategy may deliver higher returns compared to traditional index investing, the insurance company said.

Sachin Bajaj, Chief Investment Officer at Max Life Insurance, emphasised the fund’s alignment with modern investment preferences.

“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,” he said.

Should one invest?

The Nifty 500 Momentum 50 Fund is designed for those seeking aggressive growth opportunities through a well-diversified portfolio.

Investors who believe in the momentum strategy—focusing on stocks with strong recent performance—may find this fund attractive.

However, it’s essential to consider the inherent risks associated with momentum investing, as it can lead to higher volatility.

The fund is available through various ULIP products, including the Online Savings Plan, Shikhsha Plus Super, and Flexi Wealth Advantage Plan, among others.

After the NFO period, it will also be offered with other Max Life plans, such as the Platinum Wealth Plan and Smart Flexi Protect Solution, ensuring broad accessibility across different customer segments.