ABSL BSE 500 Momentum 50 Index Fund NFO: All You Need to Know
The Aditya Birla Sun Life (ABSL) BSE 500 Momentum 50 Index Fund is a new open-ended index fund tracking the BSE 500 Momentum 50 Total Return Index. This NFO (New Fund Offer) presents investors with an opportunity to access the top 50 momentum-driven stocks from the BSE 500 universe, aiming for long-term capital growth through a disciplined, passive investment approach
Key NFO Details
- NFO Opens: July 21, 2025
- NFO Closes: August 4, 2025
- Benchmark: BSE 500 Momentum 50 Total Return Index
- Fund Type: Open-ended Index Fund
- Fund Manager: Ms. Priya Sridhar
- Minimum Investment: ₹500 (lump sum & SIP)
- Exit Load: 0.10% if exited within 15 days from date of allotment; NIL thereafter
- Risk: Very High
What is the ABSL BSE 500 Momentum 50 Index Fund?
This ABSL Mutual fund tracks the BSE 500 Momentum 50 Index, which selects the top 50 stocks from the BSE 500 based on momentum scores (mainly 12-month price returns). It offers investors exposure across large-cap, mid-cap, and small-cap segments, making it one of the most diversified factor-based equity index funds available in India.
Investment Strategy & Index Methodology
- Follows a passive investment approach, aiming to replicate performance of the BSE 500 Momentum 50 Index with minimal tracking error.
- Stocks are rebalanced quarterly based on momentum characteristics.
- Momentum investing captures stocks showing strong recent performance, seeking to capitalize on ongoing positive trends
- Sector-agnostic, allowing top momentum performers from any sector into the portfolio.
Market Cap Exposure (Estimated)
| Segment | Approximate Allocation |
|---|---|
| Large-cap | 28% |
| Mid-cap | 41.7% |
| Small-cap | 30.3% |
Data as of June 24, 2025. Allocations may change post-NFO
Who Should Invest?
- Investors seeking equity exposure via a rules-based, disciplined process.
- Those looking for low-cost, passive investing in a momentum factor index fund.
- Investors with a high-risk appetite and long-term wealth creation goals.
- Diversification seekers—across sectors, market caps, and themes.
Why Consider the ABSL BSE 500 Momentum 50 Index Fund?
- Captures strong performers consistently: Focuses on stocks with sustained momentum, which historically have delivered higher returns than broad-based indices in favorable market cycles.
- Diversified Portfolio: Exposure to 50 stocks across the entire BSE 500 universe.
- Low Turnover and Cost: Quarterly rebalancing reduces portfolio churn, keeping investing costs low.
- Objective, Transparent Process: No fund manager bias—selection is solely based on momentum scoring
Should You Invest?
If you believe in the power of momentum investing, want diversified equity exposure without active management costs, and are comfortable with high volatility, this fund could be a good addition to your core equity mutual fund portfolio.
For Investments : Call 9822170179
Mutual Fund Standard Disclaimer
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
