NIPPON INDIA MUTUAL FUND FILES FOR ACTIVE MOMENTUM FUND

Published on Aug 13, 2024 13:10

Nippon India Mutual Fund has filed draft documents for Active Momentum Fund, aimed at investors seeking long-term capital appreciation. The fund will follow an active management strategy, investing in stocks exhibiting momentum characteristics.

The fund`s investment objective is to generate long-term capital appreciation for investors by strategically investing in a diversified portfolio of equity and equity-related instruments. The selection of these instruments will be based on a quantitative model designed to identify stocks with high growth potential.

The fund will predominantly invest in equity and equity-related securities of companies following a momentum theme. It targets a focused portfolio of 30-40 stocks selected from the BSE 200 index. A proprietary momentum-led multi-factor model will be used for stock selection.

The fund`s investment strategy will involve using quantitative methods to screen stocks, determine portfolio weightage, and consider factors like volatility, beta, and market shifts. The fund aims to capture market trends through price momentum adjusted for risk, and the portfolio will be regularly reviewed based on model signals and fund manager discretion.

The fund may invest in various derivative instruments as permitted by regulations, subject to investment objectives and internal limits. Ashutosh Bhargava and Kinjal Desai will co-manage the fund.

An exit load of 1% will be charged if redeemed or switched out within one year from the date of allotment.

Nippon India Mutual Fund believes this product will appeal to investors with a long-term horizon, high-risk appetite, and a willingness to participate in the fund house`s momentum thesis.