The new fund offer (NFO) will open on February 17, and close on February 24.
The scheme aims to generate returns that correspond closely to the total returns of the underlying index, subject to tracking error. The fund house stated that there is no assurance that the investment objective will be achieved.
The ETF will invest between 95% and 100% of its assets in stocks that form part of the Nifty Midcap 150 Momentum 50 Index. The remaining allocation, up to 5%, may be invested in government securities such as G-Secs, state development loans (SDLs), treasury bills, triparty repo, and units of liquid mutual funds.
The underlying index selects 50 stocks from the broader Nifty Midcap 150 universe based on a “normalised momentum” score. This score is calculated using a stock’s six-month and 12-month price returns, adjusted for volatility. Stock weights are determined by a combination of the normalised momentum score and free-float market capitalisation.
The minimum application amount during the NFO period is ₹5,000, and in multiples of ₹1 thereafter. Subsequent purchases can be made with a minimum of ₹1,000 and in multiples of ₹1. The scheme also offers systematic investment plan (SIP) options across daily, weekly, monthly, quarterly, semi-annual and annual frequencies.
The ETF will be managed by Viral Chhadva, who has been associated with the fund house since December 2020 and currently oversees several passive investment products.
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