Angel One AMC Launches India's First Smart Beta Funds on Nifty Total Market Index

Angel One Asset Management Company, a wholly owned subsidiary of Angel One, has introduced two new passive investment products: the Angel One Nifty Total Market Momentum Quality 50 ETF and the Angel One Nifty Total Market Momentum Quality 50 Index Fund. These launches represent India's inaugural Smart Beta funds based on the Nifty Total Market Index. The Smart Beta strategy employs a rule-based methodology to provide diversified exposure across large, mid, small, and micro-cap segments by selecting 50 stocks from a universe of 750 companies. Stock selection is determined by combined scores for momentum (price strength) and quality (company fundamentals). The schemes will be rebalanced semi-annually and have no exit load. The New Fund Offer (NFO) period for both funds is from November 3 to November 17. The minimum investment for the ETF is ₹1,000, while the Index Fund allows Systematic Investment Plans (SIPs) starting at ₹250 daily. Angel One AMC aims to enhance financial inclusion by expanding access to passive investing.

Impact This development offers Indian investors new, cost-effective, and transparent investment avenues that leverage a systematic approach to capture market opportunities. It is expected to boost the growth of passive investing and Smart Beta strategies in India, potentially influencing market trends and investor preferences towards rule-based investment approaches. Rating: 7/10

Difficult Terms Passive investment schemes: Investment products that aim to track the performance of a specific market index, rather than actively managed by a fund manager. ETF (Exchange-Traded Fund): A type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock. Index Fund: A type of mutual fund or ETF that aims to replicate the performance of a specific market index. Smart Beta: An investment strategy that deviates from traditional market-capitalization-weighted indexing. It uses quantitative rules to select securities based on factors like momentum, quality, value, or low volatility. Nifty Total Market Index: An index designed to represent the performance of Indian companies listed on the National Stock Exchange across large, mid, small, and micro-cap segments. Momentum: A factor in investing that refers to the tendency of an asset's price to continue in its current direction. Quality: A factor in investing that refers to companies with strong financial health, consistent earnings, and stable balance sheets. Market Capitalisation: The total market value of a company's outstanding shares of stock, calculated by multiplying the total number of shares by the current market price of one share. NFO (New Fund Offer): The initial period when a mutual fund scheme is open for subscription to investors. Systematic Investment Plan (SIP): A method of investing a fixed amount of money at regular intervals, typically monthly, into a mutual fund. Rebalancing: The process of adjusting the holdings in an investment portfolio to bring it back to its target asset allocation. Exit Load: A fee charged when an investor redeems their investment in a mutual fund before a specified period.