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Union Mutual Fund has launched Union Active Momentum Fund, an open-ended quant scheme.
The fund will use a quantitative model based on momentum factor to pick stocks. Momentum strategy captures stocks based on their price movements.
However, the fund will be actively managed with a fund manager to step in during exceptional circumstances and rebalance every quarter.
The fund will be managed by Gaurav Chopra, Co-fund manager, Union MF and Sanjay Bembalkar, Head – Equity, Union MF.
Madhu Nair, CEO, Union MF said, “Our promoter group Daiichi Holdings has a wholly owned subsidiary Vertex Investment Solutions reflecting the growing interest in rule based active investing. Union Active Momentum Fund marks our inaugural foray into this exciting world of factor-based investing. We are bullish on this category and believes smart beta strategies like active momentum will have larger role to play in Indian equity markets.”
Gaurav Chopra, Co-Fund Manager, said in a press release, “Investor sentiment is one of the guiding forces behind stock price movements. Momentum Investing is a rule-based approach with the goal to work with volatility, buy what is rising and sell when they start losing.”
Sanjay Bembalkar, Head - Equity, said, “Momentum arises from how investors act on information, driving stock prices up and creating momentum, and vice versa.”
