Navi Nifty Smallcap250 Momentum Quality 100 Index Fund With Lowest Expense Ratio Launched
FinTech BizNews Service
Mumbai, February 26, 2025: Navi Mutual Fund (“Navi MF”) announced the launch of its Navi Nifty Smallcap250 Momentum Quality 100 Index Fund, an open-ended fund that will replicate and track the Nifty Smallcap250 Momentum Quality 100 Index. Navi Nifty Smallcap250 Momentum Quality 100 is an index fund that combines the explosive growth potential of small-cap stocks with the power of factor investing. This fund selects the top 100 companies from the Nifty Smallcap 250 Index, based on a unique blend of momentum and quality factors. The momentum score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. The quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. The New Fund Offer (NFO) has opened on 25th February 2025 and will close on 10th March 2025.
With a Total Expense Ratio (TER) of 0.35% (direct plan), the Navi Nifty Smallcap250 Momentum Quality 100 Index Fund provides investors with a low cost access to smallcap stocks. Investors can invest in the new fund with a starting amount of just INR 100.
The Nifty Smallcap250 Momentum Quality 100 Total Return Index has historically delivered strong performance with a 5 Year CAGR of 25.45% (as on 31 Jan 2025). The Index has significantly outperformed its parent index, Nifty Smallcap250 Index, outperforming it in 9 of the last 11 calendar years. An investment in the Nifty Smallcap250 Momentum Quality 100 Index (TRI) on February 1st, 2015 would have yielded a 5.3x return by January 31st, 2025. This outperforms the Nifty 50 and Nifty Smallcap 250 indices (TRI), which returned 3x and 3.9x respectively.
