This is the funding fund of the market, the return of 8 times the year!

Last update:February 10, 2025, 17:04 IST

Investment Tips: Are you looking for such investment option, who put your money by choosing a good stock of the market. So Nippon India’s recently launched NFO can complete the search. Based on such a theme …Read more

New Delhi. If you are also looking for an investment option, which can hold the market’s Momentum i.e. Nabj and make strong profits, then the search is complete. Nippon India Mutual Fund has announced a unique fund based on the Momentum theme. Open-Anded New Fund Offer (NFO) has been introduced as Nippon India Active Momentum Fund Strategy. This NFO has opened on 10 February and will be closed on 24 February. This means that it can be invested at the opening price till 24 February.

This new fund factor investment follows a disciplined, rule-based approach, which reduces emotional decision making and investor’s prejudice. It depends on the basic characteristics of stocks such as alpha, low instability, quality, price, increase etc. The new fund offer is based on the theme called ‘Momentum’. Momentum means a tendency to stay in the same direction with the time of the price of a share. This concept is based on the idea that assets that have performed well in the past can continue to perform well and those who have performed poorly can continue to perform poorly.

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Returns up to 8 times a year
Nippon India Active Momentum Fund Strategy Depends on Momentum as the theme, as Momentum has been a major factor in recent times. The top of the index in a normal year gives a cumulative return (about 8 times) returns and the Nifty 500 Momentum 50 index has performed better than the Nifty 500 in 13 of the last 19 years. At the decisive turn, there may be a danger of a high decline in Momentum portfolio. For example, this has been seen during the early stages of Corona and the global financial crisis. Fund strategies resort to technical (Price Momentum) to counter this.

How is Momentum
In simple terms, funds use it to employ conditional indicators such as beta and minimal volatility to reduce instability during downtrend using minimal volatility factor. Factor Investing, whose Momentum is a part, comes with many benefits. These include diversification, as there are different returns patterns for the market factor at different times. Hence the inclusion of factor investment can reduce the potential risk of portfolio and its purpose is to increase long -term performance through diversification.

What are Momentum Fund
Momentum Fund is also a kind of equity scheme, which includes such shares, which are already accelerating. Its purpose is to invest money in a stock that already ride on the ladder of success, but in such funds there is more risk than index. To invest in such funds, either the expert should be advised or the market should be kept in the right way.