Business News/ Mutual Funds / News/  Kotak Mahindra AMC launches Kotak Nifty 200 Momentum 30 Index Fund; offer to open on 25 May

Kotak Mahindra Asset Management Company on Tuesday launched the Kotak Nifty 200 Momentum 30 Index Fund, an open-ended scheme. The new fund aims to track the performance of the top 30 companies within the Nifty 200, selected based on their Normalized Momentum Score. The new fund offer (NFO) for this scheme will open on May 25 and will close on June 8, 2023.

As per the statement, this Normalized Momentum Score is determined by 6-month and 12-month price returns, adjusted for volatility. This selection offers investors exposure to momentum stocks across market capitalizations and diverse sectors.

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Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company 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 a strong trend in price movement relative to overall market trend."

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Shah added, "This approach to investing can be potentially beneficial during periods of economic growth. But one should keep in mind that momentum investing can be volatile. With the launch of this smart beta index fund, we further strengthen our overall passive fund offerings."

It said, investors may consult their financial expert before making any investment decision.

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Updated: 23 May 2023, 07:19 PM IST
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