Momentum strategy follows a ‘buy high and sell higher’ approach of investing and exhibits high volatility in the short term. Investors with a high risk profile and long-term view can allocate 10-15 percent of their portfolio to momentum strategy. About 12 mutual fund schemes offer this play
Momentum investing is ruling the performance charts. Among large-cap equity funds, all index funds tracking Nifty200 Momentum 30 Index Fund have been one of the top performers based on one-year performance. There are 12 schemes focusing on momentum indices in the Indian mutual fund industry which includes Edelweiss Nifty Midcap 150 Momentum 50 Index Fund, a recent addition. Also, Samco Mutual Fund has launched Samco Active Momentum Fund, which is an actively managed equity fund.
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