The investment objective of the Scheme is to seek to generate long-term capital appreciation by investing in stocks showing strong momentum. Momentum stocks are such that exhibit positive price momentum – based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly.
However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
|The scheme will rebalance in real time as soon as the system detects a gain or loss of momentum in a particular stock.|
|The scheme will hedge to protect the downside when there is no or low momentum in the markets.|
|The proprietary momentum-seeking algorithm scans a universe of 750 stocks, including MicroCaps to find stocks that are gaining momentum.|
|Issuers||Industry||% Of Net Assets|
|Man Infraconstruction Limited||Construction||4.93|
|Ajanta Pharma Limited||Pharmaceuticals & Biotechnology||4.07|
|CreditAccess Grameen Limited||Finance||4.01|
|TIPS Industries Limited||Entertainment||4.00|
|FDC Limited||Pharmaceuticals & Biotechnology||3.84|
|Ratnamani Metals & Tubes Limited||Industrial Products||3.10|
|Natco Pharma Limited||Pharmaceuticals & Biotechnology||2.79|
|Mahindra Holidays & Resorts India Limited||Leisure Services||2.47|
|ICRA Limited||Capital Markets||2.45|
|Electrosteel Castings Limited||Industrial Products||2.41|
|Ramkrishna Forgings Limited||Industrial Products||2.32|
|Cochin Shipyard Limited||Industrial Manufacturing||2.25|
|Inox Wind Limited||Electrical Equipment||1.94|
|Tata Communications Limited||Telecom - Services||1.85|
|Datamatics Global Services Limited||IT - Services||1.69|
|Elecon Engineering Company Limited||Industrial Manufacturing||1.68|
|Just Dial Limited||Retailing||1.59|
|Parag Milk Foods Limited||Food Products||1.43|
|Maruti Suzuki India Limited||Automobiles||1.42|
|Sarda Energy & Minerals Limited||Ferrous Metals||1.24|
|Bajaj Finance Limited||Finance||1.17|
|Tech Mahindra Limited||IT - Software||1.10|
|Nippon Life India Asset Management Limited||Capital Markets||1.05|
|HCL Technologies Limited||IT - Software||1.03|
|Hero MotoCorp Limited||Automobiles||1.03|
|LIC Housing Finance Limited||Finance||1.01|
|Zensar Technologies Limited||IT - Software||1.00|
|Power Finance Corporation Limited||Finance||0.94|
|HDFC Life Insurance Company Limited||Insurance||0.88|
|Welspun India Limited||Textiles & Apparels||0.76|
|Vesuvius India Limited||Industrial Products||0.74|
|Radico Khaitan Limited||Beverages||0.73|
|Newgen Software Technologies Limited||IT - Software||0.59|
|Mishra Dhatu Nigam Limited||Aerospace & Defense||0.43|
|Cipla Limited||Pharmaceuticals & Biotechnology||0.24|
|Five Star Business Finance Limited||Finance||0.23|
|TREPS, Cash, Cash Equivalents and Net Current Asset||Cash & Cash Equivalents||29.91|
It is a thematic fund that invests in stocks that exhibit momentum characteristics and sell those stocks when those stocks lose momentum.
Momentum works dues to behaviour biases of the investors in the financial markets. Investors are not always rational, they have limits to their control over emotions and are influenced by their own biases such as loss aversion, regret, anchoring and disposition biases. Because of all these human biases, there exists an opportunity in the momentum space which is more consistent and time tested strategy to make an alpha in the stock market.
It is a strategy to invest in winning stocks which are showing strong momentum. Momentum stocks are such that exhibit positive price momentum – based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly. The momentum strategy is based on buy high, sell higher or alternatively, cut your losses and let your winners run.
The scheme shall invest in stocks that exhibit momentum characteristics across market capitalisations i.e. Large Caps, Mid-Caps, Small Caps and Micro Cap companies. The fund intends to benefit from momentum in stock prices from short to medium term time frame. The fund makes trades based on trading signals generated by our intelligent algorithm. This algorithm has been developed by studying years of market data including price, volume, volatility, open interest, breakouts, relative strengths and correlations with appropriate weights on various data points. The Momentum investing is based on that gap in time that exists before mean reversion occurs. Momentum is usually seen in the short- to intermediate-term.
The universe for this fund will be Nifty 750 i.e. Nifty500 stocks and Nifty Micro cap 250 stocks.
There is no restriction on number of stocks in the fund. The scheme will hold stocks that are in momentum as deemed fit by the fund manager.
No, this scheme comes under the Distinctive Patterns Strategies which will have its own framework. This scheme does not heavily rely on quality of financials and has more emphasis on price, volume, breakouts and other technical indicators.
Nifty500 TRI will be the benchmark of the scheme.
(An open-ended equity scheme following momentum theme)
This product is suitable for investors who are seeking* :
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(The product labelling assigned during the New Fund Offer is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made)
Investors understand that their principal will be at very high risk
We will notify you once SAMCO Active Momentum Fund reopens for subscriptions.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.