The Nifty 200 Momentum 30 index has achieved an impressive compound annual growth rate (CAGR) of 17.79% over 18 years, outperforming the broader Nifty 50 and Nifty 500 indices. Similarly, the Nifty Midcap 150 Momentum 50 index has achieved an exceptional CAGR of 21.28% since its inception. Moreover, when compared to the MSCI World Index, which produced 10x returns, the MSCI World Momentum Index delivered a commendable 20x return.
Based on this extensive market research and a proven track record, SAMCO MF launches India’s 1st active momentum fund that utilizes these insights offering investors an opportunity to tap into the remarkable growth potential that market momentum can provide.
Extensive historical research conducted by MSCI World Momentum Index substantiates that the Momentum factor has consistently proven itself as one of the most potent generators of alpha. Building upon this powerful investment strategy, SAMCO Active Momentum Fund meticulously selects stocks with momentum characteristics such as breakouts, price leadership, and more, deploying a proprietary momentum-seeking algorithm. By capitalizing on the prevailing price trends, the fund aims to outperform the market and generate superior returns for investors.
Umesh Kumar Mehta, Chief Investment Officer (CIO), SAMCO Asset Management Private Limited, said, “Historically, the momentum factor, or the phenomena based on persistence of stock price trends has been one of the strongest return generators. In Momentum investing, active management offers several unique advantages such as a wider investible universe, quicker rebalancing and hedging flexibility during periods of anti-momentum. By investing in stocks exhibiting momentum characteristics, we aim to offer our investors the potential for superior risk-adjusted returns.”
The fund manager for SAMCO Active Momentum Fund is Paras Matalia, a seasoned investment professional with a deep understanding of momentum-based strategies. With his expertise and experience, Matalia will oversee the fund’s investment decisions and work towards maximizing returns for investors.Commenting on the launch, Viraj Gandhi, CEO, SAMCO Asset Management Private Limited, said, “We are excited to introduce SAMCO Active Momentum Fund as India’s first actively managed Momentum Fund and this represents an exciting step forward for the Indian investment landscape. We believe this fund will open new avenues for investors seeking to benefit from momentum investing. With our dedicated team and a robust investment strategy, we are confident in delivering value to our investors.”The New Fund Offering (NFO) from SAMCO Active Momentum Fund commences on June 15, 2023, and concludes on June 29, 2023.
An important point for the investors to keep in mind is that the subscriptions will not be accepted after the NFO period until further notice. Furthermore, only those Systematic Investment Plans (SIPs) registered during the NFO period will be accepted, with fresh SIP registrations will temporarily be restricted post NFO until further notice.
