Nifty 200 Momentum 30 Index
Top 30 stocks based on momentum from the Nifty 200 index.
About the Index
This index showcases the best-performing stocks in the Indian market, selected based on their price momentum over a specified period.
Key Features:
- Includes top 30 liquid stocks
- Momentum-based selection criteria
- Designed for high-performing investment strategies
Nifty200 Momentum 30 Index Analysis
Performance Overview
Growth Pattern
The Nifty200 Momentum 30 index shows consistent growth from mid-2022, with a notable upward trend starting in early 2023. The index appears to have experienced some volatility around July to October 2024, with small dips but an overall upward trend.
Comparison with Other Indices
- Nifty Smallcap 50: Shows the highest volatility but also the highest return (45.7%), indicating a higher-risk, higher-reward profile.
- Nifty Midcap 50: Closely aligns with the Nifty200 Momentum 30 in both trend and return, suggesting a similar risk-return profile.
- Nifty 50: Exhibits more stability with the lowest return (18.4%), making it a more conservative investment option.
Sectoral Distribution of Nifty200 Momentum 30 Index
As of October 31, 2024
- Automobile and Auto Components 22.72%
- Capital Goods 21.09%
- Power 9.59%
- Financial Services 9.53%
- Telecommunication 7.37%
- Consumer Services 6.78%
- Services 4.80%
- Oil, Gas & Consumable Fuels 4.51%
- Metals & Mining 4.48%
- Healthcare 3.74%
- Consumer Durables 3.32%
- Information Technology 1.23%
- Realty 0.85%
*Data sourced from Nifty200 Momentum 30 Factsheet as of October 31, 2024. For more details, visit the Nifty Indices website.
Nifty 200 Momentum 30 ETFs Listed on NSE
Discover ETFs tracking the Nifty 200 Momentum 30 Index, providing exposure to high-momentum stocks within the Nifty 200 universe.
Aditya Birla Sun Life Mutual Fund
ETF Name: Aditya Birla Sun Life Nifty 200 Momentum 30 ETF
This ETF replicates the Nifty 200 Momentum 30 index, offering investors easy access to high-momentum stocks.
Learn moreHDFC Mutual Fund
ETF Name: HDFC Nifty 200 Momentum 30 ETF
Launched in October 2022, this ETF is open-ended and provides exposure to the Nifty 200 Momentum 30 index.
Learn moreICICI Prudential Mutual Fund
ETF Name: ICICI Prudential Nifty 200 Momentum 30 ETF
This ETF tracks the Nifty 200 Momentum 30 index and is available for trading on the NSE.
Learn moreMotilal Oswal Mutual Fund
ETF Name: Motilal Oswal Nifty 200 Momentum 30 ETF
This ETF mirrors the Nifty 200 Momentum 30 index, enabling investors to benefit from momentum-based growth.
Learn more*Please refer to each AMC's website or NSE for the latest information on these ETFs.
Nifty200 Momentum 30 ETFs Comparison
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ICICI Prudential Nifty 200 Momentum 30 ETF:
Launched in August 2022, this ETF shows returns closely aligned with the index, with moderate tracking error and solid 1- and 3-year terms.
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Motilal Oswal Nifty 200 Momentum 30 ETF:
Known for low expense ratios, this fund provides competitive returns, slightly above market averages, especially in short-term trends.
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HDFC Nifty 200 Momentum 30 ETF:
Performs consistently with low volatility, making it appealing for conservative investors.
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Aditya Birla Sun Life Nifty 200 Momentum 30 ETF:
Demonstrates steady growth, favoring high-momentum stocks within the Nifty 200.
Why Nifty 200 Momentum 30 ETFs Outperform in Bearish Markets
Investing in the stock market can be a daunting task, especially during bearish trends. Many investors often seek out options that can withstand market fluctuations, and that’s where the Nifty 200 Momentum 30 ETFs come into play. With a focus on momentum stocks, these ETFs have shown resilience compared to other indices, particularly small-cap indices which tend to experience greater drawdowns during market downturns.
Understanding Drawdowns in Small Cap Index vs. Nifty 200 Momentum 30
Historically, small-cap indices have exhibited higher volatility and more significant drawdowns compared to the Nifty 200 Momentum 30. While small-cap stocks can offer substantial growth potential, they are also susceptible to larger declines during bearish phases. On the other hand, the Nifty 200 Momentum 30 ETFs focus on stocks exhibiting strong upward price movements, allowing for better performance during market corrections.
Benefits of Momentum Investing
Momentum investing is a strategy that capitalizes on existing market trends. By selecting stocks that have demonstrated upward price momentum, the Nifty 200 Momentum 30 ETFs position themselves to benefit from sustained performance. This approach not only helps mitigate risks associated with falling markets but also enhances the potential for returns as investors flock to high-performing stocks.
Resilience During Market Downturns
In a bearish market, the Nifty 200 Momentum 30 ETFs often outperform their small-cap counterparts. This can be attributed to their focus on stocks with robust fundamentals and positive price trends, which tend to attract investor interest even when broader market sentiment is negative. By investing in these momentum stocks, investors can potentially reduce losses and preserve capital.
Conclusion
While past performance is not indicative of future results, the Nifty 200 Momentum 30 ETFs provide a compelling option for investors seeking stability and growth in volatile markets. Their ability to invest in high-momentum stocks allows them to navigate bearish trends more effectively than small-cap indices, making them a valuable addition to any investment portfolio.
Disclaimer
Investing in ETFs involves risks, including the risk of loss. Past performance is not indicative of future results. It is advisable to conduct thorough research and consider your financial situation before making investment decisions.
Final Words
The Nifty200 Momentum 30 index provides strong returns and captures positive trends in high-momentum stocks within the Nifty 200 universe. For investors looking for high returns with a reasonable level of risk, the Nifty200 Momentum 30 or Nifty Midcap 50 might be appealing options. However, those seeking greater stability may prefer the Nifty 50.
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