Samco Active Momentum Fund NFO begins on June 15; check investment strategy, offer details
Samco Active Momentum Fund will select stocks with momentum characteristics such as breakouts, price leadership, and more, deploying a proprietary momentum-seeking algorithm.
PremiumSamco Asset Management has announced the launch of its new actively managed momentum fund, Samco Active Momentum Fund, an open-ended equity scheme following momentum theme.
The new fund offer (NFO) will open on June 15 and close on June 29.
Samco Active Momentum Fund will select stocks with momentum characteristics such as breakouts, price leadership, and more, deploying a proprietary momentum-seeking algorithm, the fund house said in a release.
By capitalizing on the prevailing price trends, the fund aims to outperform the market and generate superior returns for investors, it added.
The fund will be managed by Paras Matalia, who will oversee the fund’s investment decisions and work towards maximizing returns for investors.
The benchmark index for the fund is Nifty 500 Index TRI. The fund’s minimum application amount is ₹5,000 and the minimum Systematic Investment Plan (SIP) amount is ₹500.
The exit load is 2.00% if the investment is redeemed or switched out on or before 365 days from the date of allotment of units. It will be 1.00% if the investment is redeemed or switched out after 365 days but on or before 730 days. While there will be no exit load charged after 730 days.
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The fund house highlighted that the Nifty 200 Momentum 30 index saw 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 achieved 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.
“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," said Umesh Kumar Mehta, Chief Investment Officer (CIO), SAMCO Asset Management.
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