Angel One AMC Introduces India's First Smart Beta Funds Tracking Nifty Total Market Index
Angel One Asset Management Company has introduced two innovative schemes: the Angel One Nifty Total Market Momentum Quality 50 ETF and Index Fund. These are India's first Smart Beta funds based on the Nifty Total Market Index, offering exposure across various market capitalizations. The funds select 50 stocks from 750 companies based on momentum and quality scores, with semi-annual rebalancing. The ETF requires a minimum investment of ₹1,000, while the Index Fund offers SIP options starting at ₹250 daily. The New Fund Offer (NFO) runs from November 3 to November 17. These products aim to provide broad market exposure and promote financial inclusion with no exit load.
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Angel One Asset Management Company (AMC) has made a significant move in the passive investment landscape by launching two innovative schemes - the Angel One Nifty Total Market Momentum Quality 50 ETF and Index Fund. These funds mark a milestone as India's first Smart Beta funds based on the Nifty Total Market Index, offering investors a unique opportunity to gain exposure across various market capitalizations through a rule-based approach.
Key Features of the New Funds
| Feature | Details |
|---|---|
| Fund Names | 1. Angel One Nifty Total Market Momentum Quality 50 ETF 2. Angel One Nifty Total Market Momentum Quality 50 Index Fund |
| Index Tracked | Nifty Total Market Momentum Quality 50 Index |
| Stock Selection | 50 stocks from 750 companies across large-, mid-, small-, and micro-cap segments |
| Selection Criteria | Based on momentum and quality scores |
| Rebalancing | Semi-annual |
| Exit Load | None |
Investment Details
| Fund Type | Minimum Investment | SIP Option |
|---|---|---|
| ETF | ₹1,000.00 | Not specified |
| Index Fund | Not specified | Available from ₹250.00 daily |
NFO Timeline
- Opening Date: November 3
- Closing Date: November 17
Unique Selling Points
- Broad Market Exposure: The funds provide access to a wide range of market capitalizations, from large-cap to micro-cap stocks.
- Smart Beta Strategy: Utilizes a rule-based approach for stock selection, focusing on momentum and quality factors.
- Passive Investment: Aligns with Angel One AMC's focus on passive investment products.
- Financial Inclusion: Aims to promote wider participation in the Indian financial markets.
Analysis
These new offerings from Angel One AMC represent an innovative approach to passive investing in the Indian market. By combining the broad exposure of a total market index with smart beta factors like momentum and quality, these funds aim to provide investors with a potentially enhanced risk-adjusted return profile.
The absence of an exit load and the availability of low-cost SIP options for the Index Fund version make these products accessible to a wide range of investors, from beginners to more experienced market participants. This aligns well with Angel One AMC's stated goal of promoting financial inclusion across India.
As the Indian investment landscape continues to evolve, products like these Smart Beta funds offer investors new ways to diversify their portfolios and potentially capture market opportunities across different segments of the economy.
Conclusion
Investors interested in these new funds should carefully review the scheme information documents and consult with their financial advisors to determine if these products align with their investment goals and risk tolerance.
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