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Nippon Life India Mutual Fund has launched Nippon India Active Momentum Fund, an open-ended equity scheme that will invest in momentum stocks i.e. stock that moves faster than the underlying index.
The fund strategy attempts to benefit from blend of market wisdom (price momentum) while respecting expert opinion (earnings revisions). Further, the fund may employ additional factors like minimum volatility and beta which can potentially help in reducing the portfolio risk during downtrends and better upside capture during market uptrends.
In a press release, Saugata Chatterjee, Chief Business Officer, Nippon India Mutual Fund said, "The fund brings a differentiated offering to the market by harnessing the alpha potential of momentum along with risk mitigation factors to reduce the volatility and improve the investment experience. This strategic blend attempts to ensure that investors are riding high-quality momentum with reduced risk. As an asset manager, it’s our constant endeavour to provide investors with differentiated product strategies which can be considered by investors as per their risk appetite and investment goals.”
