Newly Launched Axis Nifty 500 Momentum 50 Index Fund Review 2025
Are you ready to navigate the market tides with high-momentum stocks in 2025? If yes, the newly launched Axis Nifty500 Momentum 50 Index Fund NFO by Axis Mutual Fund, one of India's largest private banks, will give your investments a good head start for this new fiscal year.
Now, this new NFO has started its subscription on 24th January and will close on 7th February 2025.
How could it be the best NFO 2025 for you? Well, this new fund offer uses momentum investing as its core investment strategy, which means it targets the winners that have been performing well and are expected to continue doing so.
This analysis explores this latest NFO inside out to help you determine why it could be the right investment for you. Let us get started with learning what momentum investing is in simple words.
What is Momentum Investing?
In simple words, momentum investing is about finding winners in Mutual Funds. Yes, the newly launched Axis Nifty 500 Momentum 50 Index Fund NFO is based on the momentum approach that has a tendency to invest in winning stocks, which continue to perform well in the near term.
The term "Momentum" is categorised as a persistence factor that is it tends to benefit from continued trends in markets. Instead of following the traditional "buy low, sell high" approach, momentum-investing focuses on "buying high and selling higher," aiming to capitalize on existing trends and market momentum.
For example, you are likely to see a movie by a director who has given blockbusters films than someone who has given flops.
Also Read: Why investing in a NFO is a good choice?
How Momentum Investing Works?
Momentum investing, which is the core theme of this latest NFO by Axis Mutual Fund, is influenced by behavioural biases means making investment decisions based on emotions.
The momentum index works by taking into consideration the relative risk-adjusted return of each stock over recent history say- past 6 months and 12 months.
It works on the motto, "Bhaav Bhagwaan Che", meaning the price is almighty. For momentum, price is everything, as stock performance forms the underlying basis for entry and exit.
It has no concern with the company's underlying fundamental performance and essentially momentum investing works on the "Buy high & sell higher" approach.
Axis Nifty 500 Momentum 50 Index Fund: Basic Details
The below given table covers the key information of New Fund Offer in the Nifty 500 Momentum 50 Index Fund category:
| Attribute | Details |
|---|---|
| Scheme Name | Axis Nifty 500 Momentum 50 Index Fund |
| Issue Open Date | 24.01.25 |
| Issue Close Date | 07.02.25 |
| Category | Index Fund |
| Benchmark | Nifty500 Momentum 50 TRI |
| Minimum Application Amount | Rs.100 |
| Fund Managers | Mr. Karthik Kumar & Mr. Sachin Relekar |
| Plans & Options | Regular and Direct Plans with Growth and Dividend Options |
Why Invest in Axis Nifty 500 Momentum 50 Index Fund NFO?
The following points give you strong reasons to invest in this newly launched NFO by Axis AMC in 2025:
- Quickly Adapts to Market Trends: The momentum investing dynamically adjust to large, mid and small cap trends and gives you high returns in the long term. To prove this theory, let's look at the historical performance of Nifty500 momentum 50 in comparison to Nifty 500:
- Strong Earnings Margins: This new Axis nifty500 momentum 50 index fund NFO has a strong robust risk-return profile. As you can see in the below comparison, the nifty500 momentum 50 index fund has outperformed nifty 500 index with substantial margin over various periods:
| Data Label | NIFTY 50 - TRI | NIFTY 500 - TRI | Nifty500 Momentum 50 - TRI | Nifty200 Momentum 30 - TRI |
|---|---|---|---|---|
| 1 Year | 10.1% | 16.2% | 27.2% | 21.3% |
| 3 Year | 12.2% | 15.4% | 20.2% | 17.6% |
| 5 Year | 15.5% | 19.0% | 30.3% | 24.6% |
| 7 Year | 13.6% | 14.3% | 20.3% | 18.4% |
| 10 Year | 12.4% | 13.9% | 21.2% | 20.1% |
| 15 Year | 12.0% | 12.8% | 21.7% | 19.6% |
| Since Mar 2005 | 14.6% | 15.1% | 23.9% | 20.6% |
What is the Return of Nifty 500 Index Fund?
Now, talking only about how good this newly launched NFO is does little, what you need is facts and for that let's see the rolling returns, SIP returns and calendar year returns of Nifty500 momentum 50 index fund:
1. Robust Rolling Returns
The Nifty 500 Momentum 50 TRI has given better returns than the broader Nifty 500 TRI over 1-year, 3-year and 5-year periods since it started. Even though it can be more volatile, it has had higher average and typical returns. Plus, the momentum index has had more instances of returns above 10% per year compared to the broader market index.
You can refer to the below table of the data:
| 1 Year Rolling Returns | 3 Year Rolling Returns | 5 Year Rolling Returns | |||||
|---|---|---|---|---|---|---|---|
| Data Label | NIFTY 500 - TRI | Nifty500 Momentum 50 - TRI | NIFTY 500 - TRI | Nifty500 Momentum 50 - TRI | NIFTY 500 - TRI | Nifty500 Momentum 50 - TRI | |
| Average | 17.2% | 27.8% | 12.7% | 12.8% | 12.3% | 19.4% | |
| Median | 13.3% | 20.8% | 13.2% | 19.0% | 12.1% | 21.4% | |
| Min | -60.6% | -67.8% | -15.3% | -67.8% | -4.8% | -8.6% | |
| Max | 121.4% | 162.1% | 38.5% | 66.7% | 22.4% | 32.8% | |
| CAGR Ranges | % of total observation | ||||||
| Negative | 20.8% | 21.9% | 6.4% | 3.4% | 1.9% | 1.9% | |
| 0% to 10% | 22.2% | 12.1% | 10.2% | 65.9% | 34.2% | 28.8% | |
| 10% to 15% | 57.1% | 65.9% | 8.3% | 27.6% | 79.3% | 70.1% | |
| 15% to 20% | 10.2% | 8.3% | 27.6% | 17.5% | 14.9% | 3.1% | |
| Above 20% | 39.3% | 50.8% | 17.6% | 47.3% | 31% | 55.9% | |
2. High SIP Returns
Investing in the Nifty 500 Momentum 50 Index through an SIP can help you build wealth over time. Even though this index is a bit more volatile, SIPs allow you to invest regularly and benefit from averaging out the cost of your investments. Over the past 10 years, the Nifty 500 Momentum 50 TRI has given a return of 24.0% per year, which is better than the broader Nifty 500 TRI, showing it can be a good choice for long-term growth.
Check the below table to see the growth of a monthly SIP of Rs.10,000:
| Nifty500 Momentum 50 Index | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| XIRR (Returns) | 3.8% | 30.6% | 31.6% | 24.0% |
| Amount Invested | 1,20,000 | 3,60,000 | 6,00,000 | 12,00,000 |
| Market Value | 1,22,425 | 5,57,624 | 13,03,359 | 42,82,530 |
| Nifty 500 Index | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| XIRR (Returns) | 6.2% | 19.5% | 20.8% | 16.4% |
| Amount Invested | 1,20,000 | 3,60,000 | 6,00,000 | 12,00,000 |
| Market Value | 1,23,952 | 4,79,520 | 10,06,825 | 28,34,756 |
The Nifty500 momentum 50 TR index notes the XIRR of 24.0% over last 10 years.
Who Should Invest in Axis Nifty 500 Momentum 50 Index Fund?
The Axis Nifty 500 Momentum 50 Index Fund is suited for investors who:
- Are willing to take on higher risk for potentially higher returns.
- Have a long-term investment horizon of at least 5 years.
- Want to add an aggressive strategy to their portfolio for growth.
This latest NFO is ideal for those looking to capitalize on momentum in the market while staying invested for the long run.
To Conclude on Axis Nifty 500 Momentum 50 Index Fund NFO 2025
To wrap up, the Axis Nifty 500 momentum 50 index fund review, based on factor investing, sits between active and passive investing and looks to combine the best of both worlds. Ultimately, starting with a SIP (Systematic Investment Plan) is the all-time best strategy to invest in mutual funds.
Overall, if you plan to stay investment plan for the long term, this is your time to invest in the market winners and make your money work for you instead.
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