Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund

When it comes to building a robust investment portfolio, both equity funds and Unit Linked Insurance Plans (ULIPs) can serve as valuable instruments to meet diverse financial goals. For investors looking to balance growth with life cover, combining these two options offers an intriguing proposition. One such fund is the Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund, which blends large, mid, and small-cap stocks based on a unique combination of momentum and quality metrics, it offers not only market-linked growth but also the added benefit of insurance coverage, making them a versatile financial tool.

The Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.

The Growth Engine: Nifty 500 Multicap Momentum Quality 50 Index

At the heart of this strategy lies the 500 Multicap Momentum Quality 50 Index, a thoughtfully constructed index that captures two powerful drivers of returns:

• Momentum: Selecting stocks with strong recent performance trends.
• Quality: Focusing on companies with sound financials, robust balance sheets, and operational efficiency.

The index smartly diversifies across market capitalizations:

• 10 Large-Cap Stocks: Offering stability through established leaders.
• 15 Mid-Cap Stocks: Balancing growth potential with maturity.
• 25 Small-Cap Stocks: Targeting higher growth opportunities.

By blending momentum and quality across the top 50 stocks from the broader Nifty 500 universe, this index aims to outperform traditional market indices. Since inception, it has delivered an impressive 21.5% annualized return (according to NSE data).

Why Invest in a Fund Tracking This Index?

Choosing a fund like Kotak’s Nifty 500 Multicap Momentum Quality 50 Index Fund offers clear advantages:

• Higher Return Potential: Combining quality and momentum often leads to superior long-term performance compared to market-cap-weighted indices.
• Robust Diversification:

◦ Across Market Caps: Exposure to large, mid, and small companies.

◦ Across Sectors: Reducing concentration risk across industries.

• Rule-Based, Transparent Strategy: As an index fund, it follows a clear, unbiased methodology, avoiding subjective stock picking.

The Safety Net: Life Cover Solution

When we look at combining these two products—the Nifty 500 Multicap Momentum Quality 50 Index and ULIPs—the result is a diversified financial strategy that offers both growth and security.

What It Offers:

• Market-Linked Upside: Part of your investment is exposed to high-potential funds like the Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund.

How It Works (Let’s take an Example):

• A 30 year male, invested ₹15,000/month for 10 years (₹18 Lakhs total).
• Self - Managed Investment Strategy with 100% allocation in Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund (SFIN: ULIF058210 425MOMQUA 50IL107)
• After 10 years of premium payment, your corpus continues to grow until maturity.
• Maturity Benefit at the end of 20^th policy year:

◦ ₹46,68,921 @8%^*

◦ ₹26,42,709 @4%^*

Key Features of Kotak e-Invest Plus

• 100% allocation of your premiums.
• Yearly Additions starting from end of 6th policy year onwards till maturity or death whichever is earlier based on the plan options.
• 25% to 200% of Life Cover charges deducted will be added to your fund value (if applicable).
• Maximizer: This option is aimed at maximizing your returns for the money invested.
• Rising Star option offers Triple Protection Benefit on parent’s death through lump sum payout, monthly income and policy continuation till maturity.
• Retire Rich Option cover till the age of 99 years.
• Retirement Income along with Income Booster ensures your expenses after Retirement are taken care of.
• Provides flexibility to choose from two Investment Strategies
• Tax Benefits
• Life Cover: Provides an additional safety net for your family.
• Partial Withdrawals: Flexibility to access funds (e.g., minimum ₹5,000) after a lock-in period, subject to terms.

Performance Snapshot (Index Returns)

(Source: NSE benchmark returns)

Investment Strategies & Eligibility of Kotak e-Invest Plus:

Self-Managed Strategy: This strategy offers you the flexibility to choose from a wide range of nine segregated fund options that will help to maximize your earnings potential.

The Investment objective of Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund is to provide capital appreciation by majorly investing in companies forming part of Nifty 500 Multicap Momentum Quality 50 Index.

Age-Based Strategy: Automatically adjusts equity and debt allocations as you age. Allocation is done

between Classic Opportunities Fund (SFIN: ULIF-033-16/12/09-CLAOPPFND-107) and Dynamic Bond Fund (SFIN: ULIF-015-15/04/04-DYBNDFND-107).

• Eligibility:

(Annualized Premium = AP)

^&For Rising Star option, Under PT-PPT 20-5 option, maximum entry age is 40

^#Age above will be Age as on the last birthday

Conclusion

The Kotak Nifty500 Multicap Momentum Quality 50 Index offers an attractive opportunity to invest in a basket of high-performing stocks across different market capitalizations. When paired with a Unit Linked Insurance Plan (Kotak e-Invest), that provides both life cover and the flexibility of tax benefits, you can create a comprehensive financial strategy designed to grow your wealth and secure your future.

Whether you’re a seasoned investor looking to diversify your portfolio or a beginner seeking both growth and security, combining these two products can help you achieve a balanced and long-term investment approach. By investing wisely in both, you’re setting the stage for a financially secure and prosperous future.