3 MOMENTUM Indexes for HIGH Returns - LONG TERM Investing - Rahul Jain Analysis #index #investing

Summary

In this video, Rahul Jen discusses the power of momentum index investing, comparing three indices: Nifty 500 Momentum 50, Nifty 200 Momentum 30, and Nifty Midcap 150 Momentum 50. He highlights their historical returns, volatility, and sector allocations, emphasizing that while momentum indices may be more volatile in the short term, they have outperformed traditional indices over longer periods. Rahul also provides guidance on how to invest in these indices through index funds and urges viewers to conduct their research.

Takeaways

• ?Í? The Nifty 50 has given around 18.94% yearly returns in the last 5 years, representing the top 50 stocks on the Indian Stock Exchange.
• 💵 The Nifty 500 Momentum 50 index has outperformed, yielding approximately 35.77% CAGR returns in the same period, nearly double the return of the Nifty 50.
• 💲 A comparison of returns shows that investing 10 lakh Rupees in the Nifty 500 Momentum 50 index could yield around 34 lakh Rupees, compared to 14 lakh Rupees with the Nifty 50.
• 💱 The video discusses three momentum indexes and their returns, risks, and strategies to educate viewers on momentum index investing.
• 💲 Nifty 500 Momentum 50 index has shown higher returns and higher volatility in the short term, but its long-term volatility is comparable to the Nifty 50.
• 💵 The Nifty 200 Momentum 30 index selects top momentum stocks from the Nifty 200 and has shown better returns than the Nifty 200 over various periods.
• 💲 Historical data indicates that the Nifty 200 Momentum 30 index has outperformed the Nifty 200 in 14 out of 19 years and has a higher Sharpe ratio, indicating better risk-adjusted returns.
• 💱 Volatility for the Nifty 200 Momentum 30 index is higher in the short term but aligns with the Nifty 200 over longer periods.
• 💵 The Nifty Midcap 150 Momentum 50 index focuses on midcap stocks with recent momentum and has shown better returns than the Nifty Midcap 150 index.
• 💲 The video suggests that there is little overlap between the Nifty Midcap 150 Momentum 50 index and the first two indexes discussed, making it a potentially good choice for diversification.

Q & A

What is the average yearly return of the Nifty 50 index in the last 5 years?

The Nifty 50 index has given around 18.94% yearly returns in the last 5 years.

How much higher is the CAGR return of Nifty 500 Momentum 50 index compared to Nifty 50 in the last 5 years?

The Nifty 500 Momentum 50 index has given around 35.77% CAGR return in the last 5 years, which is almost 16% higher than the Nifty 50 index.

What would be the difference in gains if one invested 10 lakh Rupees in Nifty 50 versus Nifty 500 Momentum 50 index 5 years ago?

If invested in Nifty 50, the gains would have been around 14 lakh Rupees, but in Nifty 500 Momentum 50 index, the gain would have been around 34 lakh Rupees.

What is the significance of the beta value in the context of Nifty 500 Momentum 50 index?

The beta value of Nifty 500 Momentum 50 index is 1.28 on a one-year basis, indicating it is more volatile than the Nifty 50 index, which has a beta value of 1.

How does the volatility of Nifty 500 Momentum 50 index compare to Nifty 50 over different time periods?

On a one-year basis, Nifty 500 Momentum 50 is more volatile, but over a longer period (5 years, 20 years, 25 years), its volatility is lower than Nifty 50.

What is the reason behind the better returns of Nifty 500 Momentum 50 index compared to Nifty 50?

Nifty 500 Momentum 50 index selects top 50 stocks showing momentum in the previous 6 months to 12 months, suggesting that winning stocks may continue to perform well.

What is the sector allocation percentage for capital goods in Nifty 500 Momentum 50 index?

The capital goods sector has a 31.2% allocation in Nifty 500 Momentum 50 index.

How does the sector allocation in Nifty 50 differ from Nifty 500 Momentum 50 index?

Nifty 50 is driven by market cap, with financial services as a major contributor at around 32%, whereas Nifty 500 Momentum 50 index is driven by momentum.

Which index fund is available for investing in Nifty 500 Momentum 50 index?

Maul Oswal offers an index fund for Nifty 500 Momentum 50 index.

What is the one-year return percentage of Nifty 200 Momentum 30 index compared to Nifty 200 index?

Nifty 200 Momentum 30 index has given around 68.91% returns in the last one year, compared to 4.39% returns by Nifty 200 index.

How does the Nifty Midcap 150 Momentum 50 index perform in terms of returns compared to Nifty Midcap 150 index?

Nifty Midcap 150 Momentum 50 index has given slightly better returns than Nifty Midcap 150 index in the last one year and over a 5-year period.

Outlines

00:00

📊 Nifty 50 vs Nifty 500 Momentum 50 Index: A Comparative Analysis

The speaker introduces the Nifty 50 and Nifty 500 Momentum 50 indices, highlighting their respective returns over the last five years: 18.94% per year for Nifty 50 and 35.77% per year for Nifty 500 Momentum 50. The significant difference in returns is illustrated with an example showing that an investment of 10 lakh rupees in Nifty 50 would yield around 14 lakh rupees, whereas the same investment in Nifty 500 Momentum 50 would yield about 34 lakh rupees. The power of momentum investing is emphasized, and the speaker outlines the goal of the video: to discuss three momentum indices, their returns, and their risks, to educate viewers.

05:01

📈 Nifty 500 Momentum 50 Index: Performance and Volatility

The first index discussed is the Nifty 500 Momentum 50. The speaker details its returns: nearly 70% in the last year, 35% annually over the past five years, and 25% annually since its inception in 2005. Rolling returns are also considered, showing that this index consistently outperforms the Nifty 50 over three- and five-year periods. The concept of volatility is explained using beta, with the Nifty 500 Momentum 50 being more volatile in the short term but less volatile over longer periods compared to Nifty 50. The index's higher short-term volatility is contrasted with its stable long-term performance.

10:01

🔍 Nifty 200 Momentum 30 Index: Returns and Sector Allocation

The second index, Nifty 200 Momentum 30, is introduced. It selects the top 30 momentum stocks from the Nifty 200. The index has shown superior returns: 68.91% in the past year, 30.53% annually over five years, and 20.7% since inception. Comparison with Nifty 200 reveals that the momentum index consistently outperforms, with a historical pattern of outperformance in 14 of the past 19 years. The sector allocation shows a focus on automobiles and capital goods, unlike Nifty 200's financial services and IT sectors. Volatility analysis indicates higher short-term volatility but stable long-term performance.

15:02

🔄 Overlap and Diversification in Momentum Indices

The speaker compares the Nifty 500 Momentum 50 and Nifty 200 Momentum 30 indices, noting a significant overlap in top stocks like Trent Limited and Bajaj Auto. This suggests that investors might choose only one of these indices to avoid redundancy. The discussion then shifts to the Nifty Midcap 150 Momentum 50 Index, which focuses on midcap stocks and has distinct top stock holdings, making it a good candidate for diversification. The speaker emphasizes the importance of understanding overlap and diversification when investing in multiple indices.

📚 How to Invest in Momentum Indices

The speaker provides practical advice on how to invest in the discussed momentum indices. For Nifty 500 Momentum 50, investors can consider the Motilal Oswal index fund. For Nifty 200 Momentum 30, the speaker suggests using the Ticker Tape website to compare different AMC offerings based on various parameters like expense ratio and returns. For Nifty Midcap 150 Momentum 50, the same method of screening and comparing on Ticker Tape is recommended. The video concludes with an invitation for feedback and suggestions for future content, emphasizing the goal of providing valuable investment insights.

Keywords

💡Nifty 50

The Nifty 50 is a stock index that represents the top 50 companies listed on the National Stock Exchange of India. It is widely used as a benchmark for the Indian stock market. In the video, the speaker compares the performance of the Nifty 50 with other momentum indices to highlight the potential benefits of investing in momentum-based funds. The Nifty 50 is used as a reference point to demonstrate the superior returns of the Nifty 500 Momentum 50 index.

💡Momentum Index

A momentum index is a type of financial market index that tracks stocks that have shown strong upward price movement over a certain period. The video discusses three such indices: Nifty 500 Momentum 50, Nifty 200 Momentum 30, and Nifty Midcap 150 Momentum 50. These indices are designed to capitalize on the continuation of recent performance trends, aiming to provide higher returns than traditional market cap-weighted indices.

💡CAGR (Compound Annual Growth Rate)

CAGR is a measure of an investment's growth over time, expressed as an annual rate of return. In the script, the speaker uses CAGR to compare the historical performance of different indices. For instance, the Nifty 500 Momentum 50 index is said to have a CAGR return of 35.77% in the last 5 years, indicating its strong growth relative to other indices.

💡Volatility

Volatility refers to the degree of variation in the value of an index or investment over time. The video script discusses the volatility of different indices, particularly in relation to their beta values. Higher volatility can indicate higher risk, but also potentially higher returns. The speaker explains that while momentum indices may be more volatile in the short term, their longer-term volatility is comparable to or lower than that of traditional indices like the Nifty 50.

💡Beta

Beta is a measure of an investment's risk in relation to the market. A beta of 1 indicates that the investment's price moves with the market. A beta greater than 1 suggests more volatile price swings than the market. In the script, the speaker mentions that the Nifty 500 Momentum 50 index has a beta of 1.28, indicating it is more volatile than the Nifty 50 index, which has a beta of 1.

💡Rolling Returns

Rolling returns are calculated by comparing the returns of an investment over consecutive time periods. The video uses three-year and five-year rolling returns to compare the performance consistency of different indices. The speaker highlights that the momentum indices have shown higher average rolling returns than their traditional counterparts, such as the Nifty 50.

💡Sector Allocation

Sector allocation refers to the proportion of an investment portfolio that is allocated to different economic sectors. The video script mentions that the momentum indices have different sector allocations compared to traditional indices. For example, the Nifty 500 Momentum 50 index has a significant allocation to capital goods, which have been in high momentum, whereas the Nifty 50 has a higher allocation to financial services.

💡Sharpe Ratio

The Sharpe Ratio is a measure of risk-adjusted return, comparing the excess return of an investment to its standard deviation (risk). The video script uses the Sharpe Ratio to evaluate the performance of different indices over a 19-year period. The speaker notes that the momentum indices have outperformed their traditional counterparts in terms of risk-adjusted returns.

💡Mutual Funds

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. The video script discusses index funds, a type of mutual fund that aims to replicate the performance of a specific index. The speaker provides guidance on how viewers can invest in the discussed momentum indices through mutual funds.

💡Investment Horizon

Investment horizon refers to the length of time an investor plans to hold an investment. The video script emphasizes the importance of considering investment horizon when choosing between different indices. Short-term investors may face higher volatility with momentum indices, while long-term investors may benefit from their higher returns over extended periods.

💡Diversification

Diversification is an investment strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce risk. The video script suggests that investors might want to consider the overlap between different momentum indices when building a diversified portfolio. The speaker points out that the Nifty Midcap 150 Momentum 50 index has little overlap with the other two indices discussed, making it a potentially valuable addition to a diversified portfolio.

Highlights

Nifty 50 has given 18.94% annual returns over the last 5 years, while Nifty 500 Momentum 50 index delivered 35.77% yearly returns, nearly doubling the returns.

A ₹10 lakh investment in Nifty 50 five years ago would yield gains of ₹14 lakh, while the same investment in Nifty 500 Momentum 50 index would result in ₹34 lakh in gains.

Momentum investing focuses on stocks showing strong price momentum over the past 6-12 months, which has contributed to the outperformance of Nifty 500 Momentum 50 index.

The beta (volatility measure) of Nifty 500 Momentum 50 index is 1.28 over a one-year period, meaning it is more volatile than Nifty 50, which has a beta of 1.

Over a five-year period, the beta of Nifty 500 Momentum 50 index drops to 0.94, making it less volatile than Nifty 50 (beta of 1).

Nifty 500 Momentum 50 index’s sector allocation is skewed towards capital goods (31.2%), while financial services dominate Nifty 50 with 32% allocation.

The Nifty 200 Momentum 30 index, which tracks the top 30 momentum stocks from Nifty 200, has delivered 68.91% returns in the last year.

Over a 5-year period, Nifty 200 Momentum 30 index has given 30.53% annual returns, outperforming the Nifty 200 index, which delivered 21.5%.

Nifty 200 Momentum 30 index outperformed Nifty 200 index 14 times in the last 19 years, indicating a consistent trend of outperformance.

From a risk-adjusted return perspective, Nifty 200 Momentum 30 index has outperformed Nifty 200 index 16 times over the last 19 years.

Nifty 200 Momentum 30 index shows higher volatility in the short term with a beta of 1.24 compared to Nifty 200's beta of 1.05.

Nifty 200 Momentum 30 index's sector allocation is heavily weighted towards automobiles and auto components (23.62%) and capital goods (20%).

There is significant overlap between Nifty 200 Momentum 30 index and Nifty 500 Momentum 50 index, with both including stocks like Trent, Bajaj Auto, and Mahindra & Mahindra.

Nifty Midcap 150 Momentum 50 index, which tracks the top 50 midcap momentum stocks, has delivered 66.13% returns in the last year.

Nifty Midcap 150 Momentum 50 index has given 39.93% returns over 5 years, outperforming the Nifty Midcap 150 index, which delivered 31.92% returns.

Nifty Midcap 150 Momentum 50 index has minimal overlap with Nifty 500 Momentum 50 and Nifty 200 Momentum 30 indexes, making it a more diversified choice.

Transcripts

hi friends have a look at my screen and

you will see that nifty 50 in The Last 5

Years have given around 18.94% yearly

returns in The Last 5 Years and this is

the most widely used index because

nifty50 represents the top 50 stocks on

our Stock Exchange while at the same

time Nifty 500 momentum 50 index has

given around

35.77 cagr return in The Last 5 Years so

almost an extra 16% every year is what

Nifty 500 moment 50 index has managed

and just to put this difference in some

context if you invested 10 lakh Rupees 5

years ago in nifty 50 then your gains

assuming 19% C returns would have been

around 14 lakh rupees but if you

invested the same 10 lakh Rupees in a

Nifty 500 momentum 50 index then your

gain would have been around 34 lakh

rupees so more than twice the return is

what Nifty 500 momentum 50 index has

generated in The Last 5 Years and this

is the power of momentum index investing

in this video I'll speak about three

momentum indexes and I will run you

through with their returns with their

risks so that you can get educated about

three momentum indexes my intention is

to share critical data points with you

for you to make decisions none of these

indexes are recommendations so please

make sure you also do some research at

your end and people who don't know me my

name is Rahul Jen I'm a full-time

investor and a full-time content creator

with that let's start with index number

one so first index is Nifty 500 moment

50 index and if I talk about Point too

returns first in the last one year this

index has managed to give almost 70%

returns in the last 5 years it has

managed to give around 35% Returns on a

yearly basis and if you look at since

Inception so the base date of this index

is first of April 2005 the index has

managed to give around 25% yearly

returns and these are Point to-point

returns and whenever we are investing in

index funds or mutual funds we have to

look at the rolling returns also to

bring consistency into the returns so

for that have a look at my screen and

you will see if we compare Nifty 500

momentum 50 index with nifty 50 most

widely used index and if you compare on

a threeyear rolling returns basis then

from a average return perspective it has

managed to give 20.2% yearly returns

which is almost 8% or 7 to 8% higher

than the nifty50 returns if we check the

fiveyear rolling returns clearly it has

done better than nifty50 giving 19.6%

returns but you will also note that the

minimum returns or the losses here are

higher on the three-year rolling return

basis it is minus 15.3% and also on a

5year rolling returns basis and that

brings me to the volatility of this

index extremely important concept that

we need to understand and volatility in

simple terms is how much the fluctuation

is happening in index funds nav and the

majority of volatility is beta let me

give you a very simple explanation so

the value of beta for nifty 50 index

most widely used index is at one while

the value of beta for Nifty 500 momentum

50 beta is on a one-ear basis is 1.28

what does this simply mean is that if

nifty 50 or Nifty Falls by 1 then Nifty

500 momentum 50 is going to fall by 1.28

it is going to fall more so from a

volatility perspective on a one-ear

basis Nifty 500 momentum 50 beta is

slightly higher value therefore it is

more volatile so if nifty 50 falls this

is going to fall even more so this is on

a one-ear basis but more interestingly

if you look at the 5year basis or since

Inception you will see that volatility

of this index is in fact lower than the

nifty 50 so if nifty 50 falls by 1 it is

going to fall by .94 on a 5year basis if

Nifty Falls by one on a longer period 20

years 25 years basis then this is going

to fall by only 88 so the key takeaway

here is that shortterm duration this

index is volatile and if you're only

looking for short-term Investments this

might give you lot of volatility and

many people are not comfortable with

volatility right now the stock market

are all-time high and if there's a

correction then there is going to be a

shortterm pain but over a longer period

of time this index has not shown higher

volatility than the nifty50 now comes

the natural question so Rahul we

understood about the volatility what

about the returns why is it that Nifty

500 momentum 50 index has managed to

give better returns than nifty50 it is

mainly because in this index top 50

stocks are selected from the 500 stocks

and only those 5050 stocks are selected

that have shown momentum the price

momentum in the previous 6 months to 12

months and the entire thesis is that a

winning stock may continue to win for

some more time therefore there is a room

for some further rallies and if I show

you the latest top 10 stocks held in

this particular index you are going to

note stocks like Trent limited have been

in a massive Bull Run Bajaj Auto adani

ports bhat Electronics limited these are

the stocks that have been in massive

momentum in the last 6 to 12 months and

that is what is being selected in this

particular index and if you look at the

sector allocation you are going to note

that this index has got

31.2% allocation in the capital goods

which has been in a very very high

momentum while the financial services

are only at 177% now if I show you the

nifty50 sector allocation and top stocks

let's do a quick comparison and you will

see that in nifty50 financial services

is the major contributor by around 32%

and if you look at the top 10 stocks

you're going to see stocks like HDFC

Bank Reliance Industries I CA Bank these

are the heavy weights and here nifty 50

is mainly driven by the market cap while

Nifty 500 momentum 50 index is driven by

the momentum and that is why it is a

different style of investing altogether

okay Rahul how to go about investing in

Nifty 500 momentum 50 index so this is a

fairly new method of doing index

investing and I could only find one

Index Fund for Nifty 500 momentum index

and that is by mual oswal right now

their nfo is going on and you can you

can check it out if you are interested

to invest in Nifty 500 momentum 50 index

with that let's move to index number two

which is Nifty 200 momentum 30 index the

concept is very very similar that rather

than investing in Nifty 200 if we select

30 top index that have been in momentum

recently then this index comes into

picture which is Nifty 200 momentum 30

index if I talk about the returns

pointto Point returns here very quickly

last one year this index has given

around 68.9 1% returns and if I compare

that with Nifty 200 index that Nifty 200

index has given 4.39% returns so

momentum index has performed better on a

one-ear basis on a 5year basis it has

given 30.5 3 versus Nifty 200 of

21.5% even on a 5year basis this Nifty

200 momentum index has performed better

than the Nifty 200 index and on a longer

term basis as well if you see since

Inception it has given 20.7 n% returns

while the Nifty 200 index has managed to

give around 15.26% yearly Returns what

about Nifty 500 momentum 50 index that

we just talked about index number one

and if we compare that on a one-ear

basis it is neck to neck there is not

much difference but on a 5year basis

Nifty 500 momentum 50 index has given

35.77 return while the Nifty 200

momentum 30 index has given slightly

lower 30.5 3% returns so from a

historical data perspective Nifty 500

momentum 50 index has performed slightly

better than Nifty 50200 momentum 30

index but it does not necessarily mean

that this is how the future is going to

be as past returns does not guarantee

the future returns now here is more

interesting data if we compare last 19

years and if you look at number of years

that Nifty 200 momentum index has

outperformed Nifty 200 then out of 19

years 14 times it has outperformed Nifty

200 so there seems to be a pattern here

that Nifty 200 momentum index has

outperformed Nifty 200 TR index and and

also from a risk adjusted returns

perspective that can be measured by

ratio such as sharp ratio we look at the

last 19 years out of the last 19 years

16 times Nifty 200 momentum index has

beaten or outperformed Nifty 200 TR

index if I speak about the rolling

Returns on a last 3 years daily rolling

return basis 88% of the time it has

outperformed Nifty 200 TR index while on

a 5 years daily rolling returns basis

99% % of the times it has outperformed

Nifty 200 TR index what about volatility

Rahul so from a volatility perspective

have a look at this data last one year

this has been more volatile 1.24 versus

1.05 definitely this is more volatile in

shorter term but if you look at the 5

years data or or longer period of time

20 years 25 years it is slightly better

than Nifty 200 TR index so again the

conclusion is very similar here that if

you're looking for a shorter term

investment then there is likely to be

more more volatility in the momentum

index but over a longer period of time

more than 5 years of time that

volatility really is not playing out in

the cases of momentum indexes if I do

the sector comparison between Nifty 200

and Nifty 200 momentum 30 index very

clearly you will note that here in Nifty

200 momentum 30 index the maximum

allocation around

23.62 has gone to Automobiles and auto

components followed by the capital goods

at 20% while in case of nifty 200 it

remains market cap driven and financial

services followed by it are the two top

sectors and if I compare the top 10

stocks between Nifty 200 and Nifty 20000

momentum 30 index again a very

contrasting view here that it is not

driven by the heavy weights from a

market cap perspective stocks like Trent

Limited tataa Motors ntpc are the ones

that are taking the Limelight or taking

the loin share in this particular index

versus the Nifty 200 where likes of HDFC

Reliance icic driven by totally market

cap now comes really really interesting

point that if you look at the top 10

stocks of the first index that I talked

about Nifty 500 momentum 50 index and

Nifty 200 momentum 30 index you see

there is a lot of overlap so Trent

limited is in both Bajaj Auto is in both

Mahindra and mahra is in both recc is in

both right so the key takeaway here is

that Nifty 200 momentum 30 index and

Nifty 500 momentum 50 index index number

one and two there is a likelihood of a

massive overlap between these two so

therefore if you if you want to have a

diversified portfolio I would say that

instead of adding both of these you

might want to add only one of these okay

Rahul how to go about investing in Nifty

200 momentum 30 index simply go to this

free website called ticker tape.com

mutual funds start screening and you're

going to see a screen similar to this in

the equity section go ahead and tick

Index Fund so it will bring all the

index funds but then you add another

parameter here which is called Benchmark

and in this Benchmark you type momentum

and you will see the Nifty 200 momentum

30 TR select that and you are going to

see all the AMC's that are offering this

particular Index Fund you can now go

ahead and do comparison of these AMC's

in terms of their expense ratio in terms

of their average rolling returns last

one year's absolute returns and sharp

ratio and so on and so forth and you can

make your decision based on what your

really parameters are you can add a lot

of other parameters here and do lot of

comparison and Analysis and based on

what you are really looking for you can

go ahead and select your AMC and so far

if you're liking this video hit the like

button let me know in the comments a

simple thank you it will motivate me to

come up with such content for you at

zero cost and also let me know any other

topics you would like me to create

videos around in terms of mutual funds

index funds ETFs or any stocks I would

be happy to read the comments and create

upcoming videos for you with that let's

move to index number three which is

Nifty midcap 150 momentum 50 index again

very similar concept this index tracks

50 stocks that have been in recent

momentum but it selects it from the

midcap stocks which are 15 50 stocks

from stock number 101 to 250 so midcap

is the universe from a selection point

of view but it selects 50 stocks out of

those 150 midcap stocks now if we

compare this with Nifty midcap 150 index

from a returns perspective last one year

this index has managed to give around

66.1 3% returns while the Nifty midcap

150 index itself has given around 50%

returns so we know that midcap stocks

have been in a massive Bull Run in the

last one year but this index has managed

to give even slightly better returns

than the midcap 150 index if you compare

the 5 years of History this index has

managed to give 39.9 3% cagr returns

while Nifty midcap 150 index has managed

31.9 2% and also if you look at the

longer term duration more than 5 years

you will notice that this index has

managed to give better returns 25.3 n%

returns compared to 18.64% cagr returns

by Nifty midcap 150 index now

unfortunately I do not have the rolling

returns data I could not find rolling

returns data for this particular index

something that we definitely need to

look for but unfortunately I could not

find it if any of you are able to find

the rolling returns data please let me

know in the comments it'll be a very

good value addition for all the viewers

who are watching this video but moving

on if we compare the volatility of this

index very similar story here on a

one-ear basis the beta is 1.14 versus

1.03 of nifty midcap 1550 index on a

5year basis almost similar exactly same

85 and on a longer term basis it is 80

lower volatility than Nifty midcap 150

index by 84 so almost very similar

volatility here again the key takeaway

is very similar that if you're only

investing for shorter duration of let's

say one year then this index is likely

to be more volatile than the Nifty

midcap 150 index if you do the sector

comparison between Nifty midcap 150

momentum 50 index versus the Nifty

midcap 150 index again here you will see

that the capital goods sector has got

the maximum allocation by 19.59%

while in case of nifty midcap 150

Financial Services remain at number one

but there capital goods is at number two

15.51% now if you compare the top 10

stocks between the momentum and the

normal index you are going to see that

there is some overlap here for example

Dixon technolog is in both of them

commins India limited is in both of them

Lupin limited is in both of them PB

fintech is in both of them so here there

is something very different that the

Nifty midcap 150 and the Nifty midcap

150 momentum has at least some level of

overlap but here is the more interesting

fact the index number one which was

Nifty 500 momentum 50 index that we

talked about index number two Nifty 200

momentum 30 index and this index has

very little overlap I think there is no

overlap if I see the stocks here Dixon

Technologies is not there cins is not

there in any of the previous indexes oil

India is not there so it's entirely

different top 10 stocks and the key take

away here is that it is not overlapping

a lot with the first two index and

therefore people who want to invest in

momentum investing my suggestion here

will be that Nifty 200 momentum and

Nifty 500 momentum they have an overlap

so one of them can be selected while

Nifty midcap 150 momentum is not showing

any overlap it might be the second index

that you might want to consider again

not a recommendation but this data is

telling us about overlap that is very

very important when you invest in mutual

funds okay Rahul how do we go about

investing Nifty midcap 150 momentum 50

index it's very easy go to Ticker

tape.com a free website I'm not doing

any promotions for them just go to

mutual funds and say start screening you

will come back to the screen exactly the

same method go ahead and select the

index fund in the equity section here

and then go down and add Benchmark here

which is going to be in this case Nifty

midcap 150 momentum 50 index you're

going to see the list here updated list

and what you can do is compare these

basis on the expense ratio compare them

basis on the last one-ear return sharp

ratio so there are lot of parameters

that you can add and do some analysis on

this particular index so in this video I

have spoken about three momentum index

says let me know in the comments which

momentum index is your favorite index

and have you really gained some

knowledge in this video or not I would

love to read your comments your comments

will motivate me to come up with such

content for you more often with that

I'll see you in my next video Until then

keep rocking