Groww MFund launches Nifty 500 Momentum 50 ETF, NFO is open from April 3 to April 17

#GrowwMFundNFO

Chandigarh: Groww Mutual Fund has launched the Groww Nifty 500 Momentum 50 ETF, an open-ended exchange-traded fund (ETF) designed to track the Nifty 500 Momentum 50 Index. The New Fund Offer (NFO) is open for subscription from April 3 to April 17, 2025.

The Nifty 500 Momentum 50 Index selects 50 stocks from the Nifty 500 based on their momentum score. This score is calculated using 6-month and 12-month price returns, adjusted for volatility. The index is rebalanced semi-annually to reflect changing market conditions and capture stocks with the strongest price momentum.

Momentum investing follows the principle of buying stocks that are already showing an upward trend and selling them before the trend reverses. This strategy relies on price movement rather than company fundamentals, aiming to capitalise on continued stock gains. Historically, the Nifty 500 Momentum 50 Index has outperformed broader indices like the Nifty 50 and Nifty 500 in several market phases, especially during recoveries.

Data suggests that momentum investing has matched or outperformed the broader market in 70% of recovery periods. Momentum investing has also demonstrated favorable risk-adjusted returns over the long run, making it an option for investors looking to benefit from market trends. However, it remains a high-risk strategy, as stock price trends can reverse quickly.

Past performance does not guarantee future returns. Investors should review the scheme information document and consult a financial advisor before investing.