Max Life Insurance Company Ltd has launched a new fund offering (NFO) called 'Nifty 500 Momentum 50 Index Fund' in the ULIP segment, according to a statement today, August 27.

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The proposed product combines two prominent investment methodologies, flexicap and momentum investing, and would be the second vehicle based on momentum investing strategy in Max Life's portfolio of funds, following the Midcap Momentum Index product introduced in January this year.

The New Fund Offer (NFO) window will remain open till 1st September 2024, at Rs 10 per unit, applicable only during the NFO period.

The fund will track the Nifty 500 Momentum 50 Index, which comprises the top 50 companies within the Nifty 500 index.

Nifty 500 Momentum 50 Index Fund: Purpose

The fund aims to capitalise on the growing interest in flexicap funds, that re-adjust basis market movement, safeguarding investors from cyclical market capitalization scheme performance. As of June 2024, the benchmark index composition included 60 per cent large-cap, 27 per cent mid-cap, and 13 per cent small-cap stocks, reflecting a well-diversified approach to wealth creation.

Who should invest?

The Nifty 500 Momentum 50 Fund is designed for customers inter-alia looking for wealth creation opportunities over the medium to long term. The fund's 'buy high, sell higher' approach aims to capture ongoing price trends, thereby potentially delivering higher returns compared to traditional index investing.

Sachin Bajaj, chief investment officer, Max Life Insurance, commented, "As investment preferences shift towards more dynamic strategies, we are proud to present Max Life's Nifty 500 Momentum 50 Index Fund. Employing a momentum investing strategy, the fund is designed to cater to the modern customers' quest for high growth potential across India's top 500 companies. At Max Life, we remain committed to delivering innovative and robust solutions that align with our customers' evolving financial goals."

The Nifty 500 Momentum 50 Fund will be available through various ULIP products, initially including the Online Savings Plan, Shiksha Plus Super, Flexi Wealth Advantage Plan, and capital guarantee solutions. 

After the NFO period, the fund will also be offered with Max Life's Platinum Wealth Plan, Fast Track Super, Flexi Wealth Plus, and Smart Flexi Protect Solution, ensuring broad availability across different customer segments.