The Scheme aims to provide long-term capital growth from an actively managed diversified portfolio of equity & equity-related securities of companies that exhibit strong momentum. The selection of securities will be based on a quantitative model that will aim to maximize momentum exposure based on various parameters. There is no assurance that the investment objective of the scheme will be achieved.
The Scheme follows an active investment strategy. The Scheme aims to provide long-term capital growth from an actively managed diversified portfolio of equity & equity-related securities of companies that exhibit strong momentum. Momentum investing is essentially based on owning a portfolio of securities that have shown favourable price trends across different time horizons. Momentum strategy could be based on various parameters including price, growth and/or return signals. The first step of our investment process commences with liquidity analysis and data availability. Thereafter various qualitative and quantitative screeners may be applied to exclude companies that, we believe, do not meet our criteria of quality. Once the universe is finalized, we will use our proprietary quantitative model to rank stocks based on momentum. The quantitative model calculates the momentum score using any one or more metrics. For e.g. the fund may consider price based momentum strategy where the price and/or total returns of the stock across different time horizons may be considered. The fund manager will then take the output from the model and based on his views of the current market dynamics select stocks & its weights in the portfolio to construct the final portfolio at his discretion so as to maximize momentum exposure subject to constraints like security-level exposure and other risk limits as applicable. The fund manager will aim to regularly monitor and rebalance the portfolio to ensure alignment with the momentum strategy. Our proprietary quantitative model will also be regularly monitored and reviewed for updation in line with evolving market trends and data. The Fund Manager can change the quantitative and qualitative parameters by addition or deletion of the parameters, so as to optimize returns. The fund manager may at his discretion invest up to 20% of the scheme assets outside the momentum theme based on his qualitative and quantitative assessment of the investment opportunities.
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