Kotak Mahindra Asset Management Company on Tuesday launched Kotak Nifty 200 Momentum 30 Index Fund, which is an open ended scheme. The objective of the new fund is to track the performance of the top 30 companies within the Nifty 200, selected on the basis of their Normalized Momentum Score. The New Fund Offer (NFO) for this scheme will open on May 25 and close on June 8, 2023.
According to the statement, this normalized momentum score is determined by 6-month and 12-month price returns, adjusted for volatility. This selection provides investors with exposure to momentum stocks across market capitalization and diversified sectors.
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Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Co. Ltd. said, “Momentum Investing, the driving principle behind this fund, is a strategy that takes advantage of the persistence of stock price trends. It captures the potential of stocks that show strong Show the trend of price movement relative to the overall market trend.”
Shah added, “This approach to investing can be potentially beneficial during periods of economic growth. But one must keep in mind that investment momentum can be volatile. With the launch of this Smart Beta Index Fund, We further strengthen our overall passive fund offerings.”
That said, investors may consult their financial expert before taking any investment decision.
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