Momentum Index Funds Gain Popularity as Investors Flock to Factor-Based Investing
Bangalore: Momentum investing has gained significant traction in India, driven by the growing interest in factor-based index funds. The National Stock Exchange (NSE) now offers 31 factor-based indices, reflecting the rising demand from mutual funds.
Despite market turbulence, index funds tracking the Nifty Midcap 150 Momentum 50 index have continued to attract inflows. The Tata Nifty Midcap 150 Momentum 50 index fund has seen significant growth, with inflows tripling year-on-year to Rs 500 crore in 2024.
Anand Vardarajan, Head of Passive Investment at Tata Asset Management, stated, “Momentum investing allows investors to capitalize on strong price trends while eliminating emotional bias. The Tata Nifty Midcap 150 Momentum 50 Index Fund provides a disciplined approach to factor investing, balancing risk and reward.”
The fund, launched in October 2022 and managed by Kapil Menon, offers investors a potential long-term gain through its momentum-based strategy. With the increasing adoption of factor investing, the Tata Nifty Midcap 150 Momentum 50 Index Fund stands as a viable option for investors seeking to enhance portfolio diversification.
