Nippon India Nifty 500 Momentum 50 Index Fund(IDCW)

Ticker: mf16038
Decent 68/100

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Business Overview

The Nippon India Nifty 500 Momentum 50 Index Fund (IDCW) is designed for investors seeking exposure to the top-performing stocks in the Nifty 500 index. This fund focuses on momentum investing, capturing the potential of companies showing strong price trends. Ideal for both new and seasoned investors, it offers a diversified portfolio with lower volatility. Investing in this fund can help align your financial goals with market performance, making it a smart choice for long-term wealth creation.

  • Focuses on top 50 momentum stocks
  • Diversified exposure to Nifty 500
  • Lower volatility compared to individual stocks
  • Suitable for both new and experienced investors
  • Aims for long-term wealth creation
  • Managed by a trusted fund house

Investment Thesis

The Nippon India Nifty 500 Momentum 50 Index Fund (IDCW) offers a compelling investment opportunity with a strong promoter group backing, significant growth potential in digital services, and attractive valuations compared to peers. This fund is poised to capitalize on market momentum, making it a smart choice for retail investors.

  • Strong backing from the reputable Nippon India group enhances credibility.
  • Digital services sector is on a robust growth trajectory, providing ample opportunities.
  • Attractive valuation metrics compared to peer funds, offering potential for higher returns.
  • Focus on momentum stocks ensures alignment with market trends.
  • Diversified exposure to 50 high-performing stocks minimizes risk.

Opportunity vs Risk

Opportunities
  • Potential for high returns
  • Diversified exposure to top 500 stocks
  • Strong market momentum
  • Growing interest in index funds
Risks ⚠️
  • Market volatility impacts returns
  • Limited historical performance data
  • Expense ratio may affect profits
  • Economic downturns can hurt growth

Peer Perspective

Nippon India Nifty 500 Momentum 50 Index Fund trades at a slight premium compared to peers like SBI Nifty Index Fund and ICICI Nifty Next 50 Fund; a rerating could occur with sustained growth acceleration and improved margin stability.
📊 Stock Investment Checklist (100 Points)
Nippon India Nifty 500 Momentum 50 Index Fund(IDCW) • Updated: 2025-10-01 15:17:21
  • 10
    Business
    High
    The fund focuses on a diversified index, which is future-ready but lacks a strong moat.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth is moderate.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF is not consistently higher than net profit.
  • 8
    Valuation
    High
    Valuation metrics are average compared to peers.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are some concerns regarding disclosures.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain.
  • 5
    Technicals
    Good
    Market sentiment is neutral with moderate liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The Nippon India Nifty 500 Momentum 50 Index Fund presents a decent investment opportunity with moderate growth potential, but investors should be cautious of execution risks and average valuation metrics.