ATK
Mumbai (Maharashtra) [India], January 11: Star Union Dai-ichi Life Insurance Co. Ltd. (SUD Life) announced the launch of the SUD Life MidCap Momentum Index Fund (SFIN: ULIF 034 27/12/24 SUD-LI-NMM 142), available since January 7, 2025. This fund is designed to capitalize on the intersection of size premium and momentum factors in India's equity markets.
Fund Strategy and Structure
The SUD Life MidCap Momentum Index Fund tracks the NIFTY MidCap 150 Momentum 50 Index, implementing a quantitative framework that identifies the top 50 companies demonstrating positive price momentum. The selection methodology employs normalized momentum scores that reward lower volatility alongside high momentum, with systematic semi-annual rebalancing to maintain portfolio stability.
The fund focuses on mid-cap companies ranking between 101 and 250 by market capitalization, currently ranging from Rs 33,000 Cr to Rs 1 Lac Cr. These companies typically represent businesses in their growth phase, offering an established business model with significant potential for expansion.
Performance and Methodology
The NIFTY MidCap 150 Momentum 50 Index has demonstrated strong historical performance, achieving a CAGR of 24% since its inception approximately 20 years ago, outperforming the benchmark Nifty by approximately 2X. In more recent times, the index has delivered a CAGR of 35% over the past 5 years, growing invested capital 4.5X over this period.
The index construction methodology incorporates two key factors:
- Normalized momentum scores based on 6-12-month price returns adjusted for volatility
- Free-float market capitalization weighting
According to Prashant Sharma, Chief Investment Officer at SUD Life, "The fund is well suited for investors with a moderate to high-risk appetite, aiming for long-term capital appreciation and exposure to India's thriving mid-cap market. It suits those looking to enhance their portfolio with a smart, momentum-driven strategy."
The SUD Life MidCap Momentum Index Fund will be offered through the following ULIPs: SUD Life Star TULIP (UIN: 142L091V02), SUD Life e-Wealth Royale (UIN: 142L082V03), SUD Life Wealth Creator (UIN: 142L077V01), and SUD Life Wealth Builder (UIN: 142L042V04). These plans combine market-linked returns with life insurance coverage, providing a dual benefit for policyholders.
The launch of this new Fund marks SUD Life's promise to offer innovative and valuable products that align with market trends. By integrating life insurance with market exposure, SUD Life continues to bridge the gap between investment growth and financial security.
For those looking to capitalize on India's mid-cap growth story, this fund presents an opportunity to blend robust market indices with holistic financial planning.
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