- Date : 14/07/2023
- Read: 3 mins
The Nifty 200 Momentum 30 Index was recently rebalanced which has 30 stocks with the highest momentum. After the rebalancing, 11 new mid-cap stocks entered the index.
There are different indices in the market and each follows a different investment strategy. One such investment strategy is the momentum strategy wherein stocks that have the highest momentum are selected. Recently, the portfolio of the Nifty 200 Momentum 30 Index was rebalanced. The portfolio has 30 stocks, as the name indicates, picked from the Nifty 200 list based on their 6-month and 12-month volatility-adjusted momentum. In the latest round of rebalancing, 16 stocks have been replaced and out of them, 11 are mid-cap stocks that have registered a good momentum. As the index has undergone a reshuffle, it’s important to know what has changed.
Highlights
- Nifty 200 Momentum 30 Index was currently rebalanced.
- The index follows the momentum strategy wherein rallying stocks are added and declining stocks are sold off.
- 11 new mid-cap stocks have found their place in the Nifty 200 Momentum 30 Index after the rebalance
- These mid-cap stocks have registered good momentum and also form a part of many mutual fund portfolios
Mutual Funds and Index Investing
Index mutual funds benchmark a specific index and mirror their portfolio based on the benchmarked index. Such funds are passively managed and aim to replicate the performance of the underlying index. The Nifty 200 Momentum 30 Index forms the benchmark index of eight mutual fund schemes. As the index has been rebalanced, these mutual fund portfolios would also be rebalanced which would affect investor returns.
Since mid-cap stocks have a higher risk-return trade-off compared to large-cap stocks, here’s a look at the 11 mid-cap stocks that have been included in the Nifty 200 Momentum 30 Index.
Also Read: Know more about index mutual funds
Mid-cap Stocks Added to the Nifty 200 Momentum 30 Index
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The Bottom Line
If you invest in the Nifty 200 Momentum 30 Index or if you have a mutual fund scheme that benchmarks the said index, know the changes that have occurred recently. You can also invest in these mid-cap stocks directly through the stock market and build your portfolio with stocks having good potential. Make your investment decisions based on your risk profile and investment strategy to avoid unnecessary risk exposure.
If you invest in the Nifty 200 Momentum 30 Index or if you have a mutual fund scheme that benchmarks the said index, know the changes that have occurred recently. You can also invest in these mid-cap stocks directly through the stock market and build your portfolio with stocks having good potential. Make your investment decisions based on your risk profile and investment strategy to avoid unnecessary risk exposure.
Also Read: ETFs or Index Funds, which is better? Find out here!
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
