Kotak Mahindra AMC announces the introduction of the Kotak Nifty 200 Momentum 30 Index Fund on May 25
Kotak Mahindra AMC announces the introduction of the Kotak Nifty 200 Momentum 30 Index Fund on May 25.
The open-ended Kotak Nifty 200 Momentum 30 Index Fund was introduced by Kotak Mahindra Asset Management Company on Tuesday. The objective of the new fund is to monitor the performance of the top 30 companies in the Nifty 200, as determined by their Normalised Momentum Score. This scheme’s new fund offer (NFO) will open on May 25 and close on June 8, 2023.
According to the statement, this Normalised Momentum Score is derived from the 6-month and 12-month price returns, with volatility taken into account. This selection provides investors with exposure to momentum equities spanning diverse market capitalizations and industries.
Nilesh Shah, managing director of Kotak Mahindra Asset Management Company Ltd, stated, “This fund’s guiding principle is momentum investing, which capitalises on the persistence of stock price trends. It measures the potential of stocks whose price movements exhibit a strong trend relative to the broader market trend.”
Shah added, “This investment strategy may be advantageous during periods of economic expansion. However, one must remember that momentum investing can be volatile. With the introduction of this clever beta index fund, we have expanded our selection of passive funds.
Before making any investment decision, investors may consult their financial advisor, according to the phrase.
