Nifty 200 Momentum 30 Index rebalancing: 11 new mid-cap stocks that entered the index
These midcap stocks scored relatively high momentum score as they have outperformed the peers in Nifty 200 basket over the last one year. To reduce the risk levels that come with momentum strategy, some fund houses have launched momentum index funds
Momentum strategy aims to make money by buying securities when they are rising and selling them when prices start to decline. Mutual funds too offer schemes that picks stocks purely based on the momentum strategy. Currently, there are 12 schemes follow the momentum strategy of which 11 are passively managed. Within these, eight schemes track Nifty 200 Momentum 30 Index (NM30) as benchmark. The index constitutes 30 stocks that are selected from Nifty 200 basket based on the momentum score calculated from their recent 6-month and 12-month price returns adjusted for volatility. In its latest semi-annual rebalancing exercise in June 2023, NSE replaced 16 stocks of which 11 are midcap stocks. Here are the newly added midcap stocks in the basket of NM30 during June 2023. Source: ACEMF. Value as of June 30, 2023.
2/12
Apollo Tyres Sector: Auto Components No. of actively managed MF stocks that hold the stock: 40
3/12
Astral Sector: Industrial Products No. of actively managed MF stocks that hold the stock: 69
4/12
Aurobindo Pharma Sector: Pharmaceuticals No. of actively managed MF stocks that hold the stock: 49
