Angel One Launches India’s First Smart Beta Nifty Total Market MQ50 ETF and Index Fund

Angel One Asset Management Company, a wholly owned subsidiary of Angel One, announced the launch of two passive investment products: Angel One Nifty Total Market Momentum Quality 50 ETF and Angel One Nifty Total Market Momentum Quality 50 Index Fund. These offerings mark India’s first Smart Beta funds tracking the Nifty Total Market Index.

Key Features of the New Funds

• Products: ETF and Index Fund under Smart Beta structure
• Underlying Index: Nifty Total Market Momentum Quality 50 (MQ50)
• Stock Universe: 50 stocks selected from 750 companies across large-, mid-, small-, and micro-cap segments
• Selection Criteria: Momentum (50%) and Quality (50%) factors
• NFO Period: November 3 to November 17, 2025
• Minimum Investment: ₹1,000 for ETF; SIP options start at ₹250 per day for Index Fund
• Exit Load: None

The schemes aim to optimise returns and diversification through a rules-based methodology and will rebalance semi-annually.

Smart Beta Strategy Explained

The MQ50 index combines price momentum and quality fundamentals to select top-performing stocks. Momentum scores are based on six-month and twelve-month ratios, while quality scores assess Return on Equity (ROE), Debt-to-Equity ratio, and EPS growth variability over five years.

Each stock is capped at 5% or five times its free-float market cap weight, ensuring balanced diversification across sectors.

Industry Positioning

Angel One Mutual Fund focuses exclusively on passive products, including ETFs and index funds, to promote financial inclusion and expand access to low-cost, rule-based investing. This launch aligns with the broader industry trend toward Smart Beta strategies for enhanced risk-adjusted returns.

Index Composition and Rebalancing

The Nifty Total Market MQ50 Index is drawn from the Nifty Total Market Index, which covers 93% of market capitalisation and includes 750 stocks. The MQ50 portfolio consists of the top 50 companies ranked by combined momentum and quality scores. The index is rebalanced semi-annually in June and December to adapt to market dynamics.

Read More: Angel One Nifty Total Market Momentum Quality ETF Opens.

Conclusion

Angel One’s introduction of India’s first Smart Beta ETF and Index Fund under the Nifty Total Market MQ50 framework marks a step in passive investing innovation. With transparent rules, diversified exposure, and no exit load, these products cater to investors seeking cost-efficient, factor-based strategies.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.