Baroda BNP Paribas Mutual Fund has launched an innovative new fund offer (NFO) Baroda BNP Paribas Nifty200 Momentum 30 Index Fund today, September 24, according to a statement.

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The scheme is designed to tap into the power of momentum investing, offering investors a smart, passive strategy to leverage the top 30 momentum stocks from the Nifty 200 Total Return Index.

Baroda BNP Paribas Nifty200 Momentum 30 Index Fund: Subscription date

The NFO will open on September 25, 2024, and will close on October 9, 2024. 

Baroda BNP Paribas Nifty200 Momentum 30 Index Fund: Key features

  • The fund will track the NIFTY 200 Momentum 30 Index by investing in a portfolio of 30 companies that are part of the NIFTY 200 Momentum 30 Index.
  • These 30 companies are selected from the NIFTY 200 Index based on their normalised momentum scores.
  • The Nifty 200 Momentum 30 Index has consistently outperformed the NIFTY 50 Index by a significant margin since its inception.
  • Assume one lakh invested at the inception in April 2005 of the Nifty 200 Momentum 30 Index TRI might have grown to 46 lakhs; while the same amount invested in the Nifty 50 TRI might have grown to 15.5 lakhs; the Nifty 200 Momentum 30 Index giving ~3X higher returns than the Nifty 50 TRI over this time. 
  • However, past performance may or may not be sustained in the future and is not a guarantee of any future returns.

“Our Baroda BNP Paribas Nifty200 Momentum 30 Index Fund seeks to offer the best of both worlds—cost-efficiency of passive investing and the potential for outperformance by taking advantage of factor-based investing,” said Suresh Soni, CEO, Baroda BNP Paribas AMC. 

"Factor investing, which is a concept under passive investing, at the core tries to identify the factors that contribute to superior stock performance. Our analysis of factors indicates that the momentum factor has one of the best performance track records in India. This approach has shown good results in back-testing, with the Momentum strategy (as represented by the NIFTY 200 Momentum 30 Index) outperforming the Nifty 50 Index consistently," he added.

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