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Highlights:

* NFO opens on July 22, 2022, and closes on August 2, 2022

* The offering aims to track the performance of top 30 companies sorted on the basis of momentum score from the Nifty 200 universe

* Minimum Investment Amount for ICICI Prudential Nifty200 Momentum 30 ETF: Rs. 1000/- (plus in multiples of Re. 1)

* Minimum Investment Amount for ICICI Prudential Nifty 200 Momentum 30 Index Fund: Rs. 5000/- (plus in multiples of Re. 1)

* Nifty 200 Momentum 30 TRI outperformed Nifty 200 TRI and Nifty 50 TRI 8 out of 10 times till 2021

Mumbai : ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential Nifty200 Momentum 30 ETF, an open-ended Exchange Traded Fund tracking the Nifty200 Momentum 30 Index. Along with the ETF, the fund house is also launching ICICI Prudential Nifty 200 Momentum 30 Index Fund. The index fund is an open ended scheme replicating the Nifty 200 Momentum 30 Index.

The Nifty200 Momentum 30 Index constitutes of 30 companies selected from the Nifty 200 index based on their normalized momentum score.

Speaking on the launch of the product, Mr. Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “ICICI Prudential Nifty200 Momentum 30 ETF and ICICI Prudential Nifty 200 Momentum 30 Index Fund are the newest addition to our product bouquet. Both the offerings allow investors to capitalize on market trends by investing in stocks that have shown upward price momentum. The index comprises 30 stocks selected from Nifty 200 universe based on a combination of the stock’s Momentum Score and free-float market capitalization. Investors looking to invest in a Momentum based factor may consider investing in this scheme for long term”. The units of ETF scheme will be listed on the BSE and NSE.

Why should investors consider in such schemes?

- The scheme aims to exhibit persistence by riding an established trend as per the underlying index

- The scheme offers an opportunity to diversify equity investments across various sectors

- The scheme provides the opportunity to invest in 30 stocks selected from Nifty 200 Universe.

- Reduces subjective biases by adding winners and removing laggards based on well-defined processes.

Macro factors like the pace of economic growth and inflation tend to explain returns across asset classes like equity or bond markets whereas style factors explain returns within those asset classes. Momentum comes under the category of style factors and captures the trending movements of stock prices.

Key elements of Momentum Investing

* The strategy aims to capitalize on the continuance of existing trends in the market

* Follows certain risk management rules to address volatility and other hidden traps that reduce profits

* Involves a strict set of rules based on technical indicators that dictate market entry and exit points for particular securities

* Possible to earn profit by staying with a trend until its conclusion, no matter how long that may be

In terms of portfolio, the Nifty 200 Momentum 30 index is overweight on some of the fast-growing high momentum stocks from the sectors like Metals, Consumer Services, Chemicals, Power and Capital Goods.

Performance History

Nifty 200 Momentum 30 TRI has outperformed Nifty 200 TRI and Nifty 50 TRI 8 out of 10 times till 2021.

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