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Table of Content
1. What is the Nifty Midcap 150 Momentum 50 Index?
2. Key Features of NIFTY Midcap 150 Momentum 50 Index
3. What are the key sectors in Nifty Midcap 150 Momentum 50 Index?
4. What are the Key Midcap Stocks Featured in the Nifty Midcap 150 Momentum 50 Index?
5. How is the Performance of NIFTY Midcap 150 Momentum 50 and Other Indices?
6. What Are the Returns of NIFTY Midcap 150 Momentum 50?
7. How to Invest in Nifty Midcap 150 Momentum 50 Index Stocks?
As a strategy index, the Nifty Midcap 150 Momentum 50 Index consists of 50 stocks carefully picked from the more exhaustive Nifty Midcap 150 Index. It only includes listed stocks. The selection is based on each stock’s normalised momentum score. After adjusting for volatility, the normalised momentum score is computed for each stock using its 6-month and 12-month price returns.
This index does not include stocks that have hit the lower or upper circuit in at least 20% or more trading sessions across the last six months. Neither are the ones that do not offer trades on Futures and Options.
Each stock's weight on the Nifty Midcap 150 Momentum 50 Index is determined by combining its free-float market capitalisation with its normalised momentum score. This index is excellent for creating ETFs, structured products and index funds. It is also useful in benchmarking schemes such as momentum funds.
The Nifty Midcap 150 Momentum 50 Index undergoes rebalancing twice a year — once in June and then in December. There is a possibility of new stock additions at this time if some existing ones are removed.
Here are some of the key features of the NIFTY Midcap 150 Momentum 50 Index that make it an attractive investment opportunity:
The index primarily focuses on the top 50 mid-cap companies listed on the National Stock Exchange of India (NSE). The market capitalisations of these companies are between large-cap and small-cap companies. Therefore, they offer a balance between growth and stability.
The index strictly includes listed stocks only. It does not include stocks that may be a part of the NIFTY Midcap 150 but have hit the lower or upper circuit in the last six months across at least 20% or more trading sessions. Also, stocks that do not offer trades on futures and options are excluded.
Predicted momentum criteria, including indications like trading volume and recent price performance, determine which 50 stocks make the cut for the NIFTY Midcap 150 Momentum 50 Index. Momentum investing helps select stocks displaying substantial upward price trends for a given period.
The index is rebalanced periodically to maintain its stable composition. This practice helps accommodate shifts in the momentum of the companies that form it. It takes place twice a year and involves the addition or deletion of stocks from the 50 selected. The basis of changes are shifts in market sentiment, developments within individual companies, or changes in the economy. The index may adjust to these changes and prevent any possible deviation from its planned strategy by rebalancing.
The methodology used to make and maintain the index is transparent. It is also publicly available. This helps investors understand how each stock is selected and weighted in the index. With ample transparency, investors can quickly assess the suitability of the index as a benchmark or an investment.
The NIFTY Midcap 150 Momentum 50 Index works as a benchmark to evaluate the performance of different mid-cap momentum investment strategies. Investors and fund managers can compare their investment returns against the index to assess their relative performance.
The index features stocks from various sectors, keeping the midcap category fairly represented. This guarantees diversity and lowers sector-specific risks. With diversification, individual company risk is also reduced, and sector concentration can be avoided, leading to a potentially stable portfolio.
The index serves as the basis for various investment products. These include - exchange-traded funds (ETFs), index funds, and structured products. These investment instruments help investors gain exposure to the index's performance as they incorporate the same mid-cap momentum strategies into their portfolios.
The key sectors include:
Sector |
Weightage (%) |
Financial Services |
29.18 |
Healthcare |
19.53 |
Capital Goods |
18.15 |
Realty |
9.01 |
Metals & Mining |
6.34 |
Information Technology |
5.30 |
Chemicals |
3.68 |
Automobile and Auto Components |
3.45 |
Power |
3.30 |
Construction Materials |
0.65 |
Textiles |
0.61 |
Media, Entertainment & Publication |
0.50 |
Consumer Durables |
0.30 |
From the broader Nifty Midcap 150 Index, the Nifty Midcap 150 Momentum 50 Index has 50 midcap momentum stocks. As of December 30, 2023, the following table details the top 10 midcap companies included in this index:
Company |
Weight |
Aurobindo Pharma Ltd. |
5.02% |
REC Ltd. |
4.85% |
Power Finance Corporation Ltd. |
4.81% |
Lupin Ltd |
4.46% |
Polycab India Ltd. |
3.65% |
Bharat Heavy Electricals Ltd. |
3.53% |
Supreme Industries Ltd. |
3.27% |
Jindal Stainless Ltd. |
3.26% |
Alkem Laboratories Ltd. |
2.97% |
NDMC Ltd. |
2.91% |
Aurobindo Pharma has the highest individual allocation of any stock in this index as of December 31, 2023, at 5.02%.
Nifty Midcap 150 Momentum 50 Index has outperformed the NIFTY Midcap 150 Index 100% of the time over the 1-year, 5-year and since inception.
Index Name |
3-Years Returns |
5-Years Returns |
10-Years Returns |
NIFTY Midcap 150 Momentum 50 |
35.5% |
31.2% |
27.4% |
NIFTY Midcap 150 |
26.5% |
24.4% |
21.7% |
NIFTY Smallcap 250 |
29.5% |
24.9% |
19.9% |
NIFTY 50 |
14.8% |
15.3% |
13.4% |
Source: https://www.niftyindices.com/indices/equity/strategy-indices/nifty-midcap150-momentum-50
Here are the returns of NIFTY Midcap 150 momentum 150:
Index Returns (%) |
QTD** |
YTD** |
1 Year |
5 Year |
Since Inception |
Price Return |
8.73 |
8.73 |
70.10 |
30.08 |
23.26 |
Total Return |
9.00 |
9.00 |
71.50 |
31.05 |
24.55 |
You can invest in the NIFTY Midcap 150 Momentum 50 Index stocks in many different ways. You can either individually buy each of the listed stocks from the stock market or you can invest in them through instruments that track this momentum index. Two such examples are index funds and exchange-traded funds or ETFs. Read on to find out more:
Although exchange-traded funds (ETFs) are often well-liquid, execution prices and bid-ask spreads are subject to market volatility. Investors may diversify their holdings in the NIFTY Midcap 150 Momentum 50 Index using index funds or exchange-traded funds (ETFs), which provide cost-efficiency, transparency, and efficiency. Picking one over the other is mostly a matter of personal choice, trading style, and financial goals.
You can choose to invest in HDFC Life Midcap Momentum Fund (ULIF07317/01/24MidCpMoIdx101) available only with 4 HDFC Life ULIPs. The index chooses to invest in the top 50 companies within the Nifty midcap 150 index based on momentum score. The companies in the index are selected based on its 6-month and 12-month price return, adjusted for volatility. Stock weights are based on a combination of the stock’s Normalized Momentum Score and its free-float market capitalization. On the other hand, companies in the midcap index are purely based on free float market capitalization.
The NIFTY Midcap 150 Momentum 50 Index is a composition of the top 50 stocks of mid-cap companies, selected based on strong momentum. It offers diversified exposure and acts as a benchmark for mid-cap momentum strategies.
Predefined momentum criteria, which usually include recent price performance, trading volume, and other momentum indicators, are used to pick stocks for inclusion in the NIFTY Midcap 150 Momentum 50 Index. The index gives precedence to stocks that have high momentum characteristics.
The NIFTY Midcap 150 Momentum 50 Index and similar investment products may offer investors several advantages. These include a chance to diversify their holdings within the midcap segment, exposure to midcap stocks with strong momentum characteristics, and the possibility of improved returns through the momentum effect.
A person's investment goals, risk appetite, and portfolio strategy should be considered when deciding whether the NIFTY Midcap 150 Momentum 50 Index Fund is a good fit. A transparent and cost-effective way to get exposure to midcap equities with momentum is via index funds. However, do consider factors like the fund's performance, costs, and time horizon.
By putting money into midcap companies showing signs of movement, the HDFC Life MidCap Movement Fund hopes to create long-term capital appreciation. Potential advantages of investing in this fund include diversity within the midcap market. It also offers exposure to growth-oriented midcap companies, and active management by seasoned fund managers. However, before putting money into the fund, research its goals, past performance, fees, and risks.
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^ Please note all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes in tax law.
**QTD, YTD and 1-year returns are absolute returns. Returns for greater than one year are CAGR returns. Data updated as of March 28, 2024.
ARN - MC/03/24/10068