Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund - Direct (G): NFO Details

Investment Objective and Strategy

Objective:

The investment objective of the scheme is to provide returns before expenses that correspond to the total returns of the Nifty500 Multicap Momentum Quality 50 Index Fund - Direct (G), subject to tracking errors. 

There is no assurance or guarantee that the investment objective of the Scheme will be achieved.

Investment Strategy:

For the Edelweiss Nifty500 Multicap Momentum Quality 50 Index Fund - Direct (G), the objective is to serve as a proxy for the Nifty500 Multicap Momentum Quality 50 Index. In the index, 50 stocks have been selected from the Nifty 500 basis two parameters: momentum and quality. Momentum is the measurement of recent price movements to capture those having the highest upward trends. Quality would examine if a company's financial health supports profitability, with low leverage in this situation. Therefore, by both of these factors, the fund seeks to invest in large, mid, and small-cap stocks as widely and diversely as possible but which have the strongest price trends and sound fundamentals.

Why Invest in Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund - Direct (G)?

This, of course, is investing in the Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund- Direct (G), and it has many pluses for investors. These include diversified exposure across large, mid, and small cap stocks for balanced participation in the broader market. It captures two really important factors simultaneously: momentum, that identifies stocks that have shown strong price appreciation, and quality, which selects financially sound companies. This strategy captures growth from companies that show not just upward price trends but also have robust fundamentals. This approach is desirable because it is passively managed index fund which provides the best possible, low-cost, and transparent way to invest in a very well-curated portfolio of high-potential stocks. Hence it is suitable for long-term investors looking to benefit from market trends with minimized risks.

Strength and Risks - Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund - Direct (G)

Strengths:

The obvious strengths of Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund - Direct (G) are diversified exposure to large, mid and small-cap stocks, a focus on those stocks with the strong momentum of robust quality, and an inherently low-cost passive structure. Together, all these virtues will hold risk at bay while capturing growth opportunities. Since this fund selects soundly capitalized companies with strong price trends, long term capital appreciation is potential for applicants who seek a balanced factor based investment.

Risks:

These types of risk will be carried by the investment in Edelweiss Nifty 500 Multicap Momentum Quality 50 Index Fund - Direct (G). Such a momentum-driven fund may be less stable regarding return in the case of a market downturn because it is bound to produce some very sharp price swings even in the case of momentum stocks. Further, in rapidly rising markets, there tends to be a bias toward high-quality companies that do not perform the best, thereby underperforming high-growth, low-quality companies that tend to be market leaders. It is a passive fund; therefore, it does not have flexibility to adjust its portfolio during market corrections. Investors will have to keep this in mind as well while considering risk in order to accept or reject their invitations.