Nifty500 Multifactor MQVLv50 Index

The Nifty500 Multifactor MQVLv50 picks 50 stocks out of the wider Nifty 500, using not one but four factors at the same time.

The Four Factors are Momentum (price strength), Quality (financial health), Value (how cheap a stock is versus its fundamentals), and Low Volatility (how steady the price has been). The "MQVLv" in the name stands for these four.

Since NSE Indices maintains the index, it serves as a reliable benchmark for fund managers to use for index funds, ETFs, and similar products built around multi-factor investing.

Tracking the Nifty500 Multifactor MQVLv50 live is like watching 50 stocks drawn from across India's large, mid, and small-caps, scored well on a four-way screen, not just on size.

Selection of stocks in the Nifty500 Multifactor MQVLv50 index runs through a filter, four-factor scores, and a final ranking. Here is how it works:

1. Parent universe

   : The stock must already be part of the Nifty 500 index.

2. Liquidity filter

   : Stocks that are hard to trade are screened out, so only reasonably liquid names stay in.

3. Momentum score

   : Built from six-month and twelve-month price returns, adjusted for how volatile the stock has been.

4. Quality score

   : Built from return on equity, the debt-to-equity ratio, and how steady the company's earnings have been over five years.

5. Value score

   : Built from earnings-to-price, book value-to-price, sales-to-price, and dividend yield.

6. Low volatility score

   : Built from how much the daily price has swung over the past year — steadier stocks score better.

7. Top 50

   : The four scores are combined into a single score. The 50 best-ranked stocks make it into the Nifty500 Multifactor MQVLv50 index.

8. Review & rebalancing

   : The list is refreshed twice a year, in June and December.

The index sets each stock's weight from its combined factor score, not from company size. Size only comes in through a cap.

1. Weight basis

   : Each stock's weight comes from its combined four-factor score — better scores earn more weight, regardless of how big the company is.

2. Stock cap

   : No single stock can carry more than 5% weight, or 5 times what it would get on size alone, whichever is lower. This stops any one name from taking over.

3. Live updates

   : The index value changes throughout the day as the stock prices move. And that's what feeds the Nifty500 Multifactor MQVLv50 share price tickers.

4. Two versions

   : Along with the regular price index, a Total Returns version of this index is also published. This version adds dividends back into the Nifty500 Multifactor MQVLv50 Index.

Let us look at some benefits of investing in NSE's Nifty500 Multifactor MQVLv50 stocks:

• Four factors in one basket: A stock has to stack up on momentum, quality, value, and low volatility together, not just one of them.
• Dynamic mix than a plain Nifty 500 fund: Because weights depend on the factor score, the basket looks different from a standard market-cap-weighted Nifty 500.
• Spread across market sizes: Since it draws from the Nifty 500, the index includes large, mid, and small-cap names across many sectors.
• Reduced single-stock concentration: The 5% cap at each review limits how much any one company can sway the index.
• A clear, rule-based process: Every addition and removal follows a written rulebook with scheduled reviews. In short, there are no judgment calls in between.

With Anand Rathi's TradeMobi platform, investing in the Nifty500 Multifactor MQVLv50 or any of the NSE indices is simple.

Here's how to get started:

1. Step 1: Open / Login to Your Account

   
   Start by registering yourself and opening your demat account and trading account.

2. Step 2: Explore Investment Options

   
   Search for the relevant funds or ETFs that track the Nifty500 Multifactor MQVLv50 index.

3. Step 3: Choose Your Investment

   
   Pick a suitable option based on your understanding and risk appetite, and invest.

4. Step 4: Invest and Track

   
   Once invested, you can track the Nifty500 Multifactor MQVLv50 share price regularly — right from your dashboard.

5. Step 5: Stay Updated

   
   For more information, use research tools to follow developments in this domain.

The Nifty500 Multifactor MQVLv50 index was launched by NSE Indices in February 2025, with a base date of April 1, 2005, and a base value of 1000. The live track record starts at launch, while the older numbers from the base date are backtested rather than representing real returns.

Single-factor indices, for eg, momentum-only, quality-only, value-only had already become popular in India before this one arrived. Combining four factors into a single index was a newer step, aimed at not leaning too hard on any one of them.

Since launch, the index has been used as a benchmark for index funds and ETFs built around this multi-factor approach.