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Baroda BNP Paribas Mutual Fund has launched a smart beta fund - Baroda BNP Paribas Nifty200 Momentum 30 Index Fund.
As the name suggests, the scheme will invest in Nifty 200 Momentum 30 Index, which picks top 30 based on their momentum score.
The momentum factor invests in strong past performance in the last 6 months. It selects stocks based on parameters like point-to-point returns and past alpha generation.
In a press release, Suresh Soni, CEO, Baroda BNP Paribas AMC said, “Our analysis of factors indicate that momentum factor has one of the best performance track records in India. This approach has shown good results in back-testing, with the Momentum strategy (as represented by the NIFTY 200 Momentum 30 Index) outperforming the Nifty 50 Index consistently.”
