Kotak MF launches its factor index fund

Kotak Mutual Fund has launched Kotak Nifty 200 Momentum 30 Index Fund, an open-ended scheme replicating/tracking the Nifty 200 Momentum 30 Index.

Nifty 200 Momentum 30 Index tracks the performance of the top 30 companies within the Nifty 200, selected based on their normalized momentum score. This normalized momentum score is determined by 6-month and 12-month price return, adjusted for volatility. This selection offers investors exposure to momentum stocks across market capitalizations and diverse sectors.

In a press release, Nilesh Shah, MD, Kotak MF said, "Momentum investing is a strategy that takes advantage of the persistence of stock price trends. It captures the potential of stocks that show a strong trend in price movement relative to overall market trend. This approach to investing can be potentially beneficial during periods of economic growth. But one should keep in mind that momentum investing can be volatile.”