Tata Mutual Fund has launched Tata Nifty Midcap 150 Momentum 50 Index Fund. It is an open-ended scheme tracking NIFTY Midcap 150 Momentum 50 Index. In a statement, Tata MF said that Tata Nifty Midcap 150 Momentum 50 Index Fund aims to provide returns, before expenses, that are commensurate with the performance of NIFTY Midcap 150 Momentum 50 Index (TRI), subject to tracking error.

“Momentum strategy takes into consideration the past price performance of the stock over a defined period. We believe that the price outperformance of a stock captures a lot of good around the stock, hence once a trend is well-established, it may be likely to continue. A carefully crafted investing strategy may provide the confidence necessary to continue with the methodology in all time frames of the market. Our cost-efficient offering through an Index Fund makes an opportunity for long-term equity investors,” said Sailesh Jain, fund manager, Tata Asset Management.

Where will it invest?

Tata Nifty Midcap 150 Momentum 50 Index Fund fund will invest in securities covered by NIFTY Midcap 150 Momentum 50 Index with 95%-100% allocation, debt and money market instruments up to 5% allocation and will be benchmarked against NIFTY Midcap 150 Momentum 50 Index (TRI).

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Exit Load

Tata MF said the exit load is 0.25% of the applicable NAV, if redeemed on or before 90 days from the date of allotment.
Subscription amount

The minimum subscription amount is Rs. 5,000 per application and in multiples of Re 1 thereafter. The minimum application amount is applicable for switch-ins as well.

NFO dates

The New Fund Offer (NFO) opened today (4 October 2022) and will close on 17th October 2022.

Fund Manager

Sailesh Jain is the fund manager of Tata Nifty Midcap 150 Momentum 50 Index Fund.

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Risks

The scheme offers no assurance or guarantees that the investment objective will be achieved. The product may be suitable for investors seeking long-term capital growth. However, the principal invested in this fund will be at very high risk.

(Disclaimer: Mutual fund investments are subject to market risks. Please consult your financial advisor and read the offer documents carefully before investing)