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.
Key Highlights |
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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. |
Type of scheme
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An open-ended equity scheme following momentum theme
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Plans
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Benchmark Index
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Nifty 500 TRI
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STP Frequency
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Minimum Application Amount of scheme
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₹ 5000 and in multiples of ₹ 1/- thereafter
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Minimum Additional Application Amount
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₹ 500 and in multiples of ₹ 1/- thereafter
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Minimum SIP Amount
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₹ 500 and in multiples of ₹ 1/- thereafter
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Entry Load
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Not applicable
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Exit Load
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Fund Manager
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Mr. Paras MataliaFund Manager Mr. Umeshkumar MehtaCIO & Fund Manager Mr. Dhawal DhananiDedicated Fund Manager for overseas investments |
Issuers | Industry | % Of Net Assets | % to Derivatives |
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HDFC Bank Ltd | Banks | 9.23 | -9.31 |
Swan Energy Limited | Diversified | 7.28 | |
Wockhardt Ltd | Pharmaceuticals & Biotechnology | 5.21 | |
Man Infraconstruction Ltd | Construction | 4.28 | |
Tips Industries Ltd. | Entertainment | 3.23 | |
Ajanta Pharma Ltd | Pharmaceuticals & Biotechnology | 3.00 | |
Power Finance Corporation Ltd | Finance | 2.48 | -2.49 |
REC Limited | Finance | 2.46 | -2.47 |
FDC Limited | Pharmaceuticals & Biotechnology | 2.44 | |
Bosch Ltd | Auto Components | 2.09 | |
ICICI Securities Limited | Capital Markets | 1.95 | |
Adani Enterprises Ltd | Metals & Minerals Trading | 1.93 | -1.94 |
Tata Steel Ltd | Ferrous Metals | 1.82 | -1.83 |
Adani Power Ltd | Power | 1.80 | |
Shriram Finance Limited | Finance | 1.68 | -1.68 |
Torrent Power Ltd | Power | 1.47 | |
United Spirits Ltd | Beverages | 1.37 | |
Cochin Shipyard Limited | Industrial Manufacturing | 1.30 | |
Bharat Petroleum Corp Ltd | Petroleum Products | 1.26 | -1.26 |
Oil & Natural Gas Corporation Ltd | Oil | 1.26 | -1.25 |
Grasim Industries Ltd | Cement & Cement Products | 1.02 | -1.03 |
SBI Life Insurance Company Limited | Insurance | 1.01 | |
Godrej Industries Ltd | Diversified | 0.94 | |
Hero MotoCorp Ltd | Automobiles | 0.90 | |
Nippon Life India Asset Management Limited | Capital Markets | 0.90 | |
Alembic Pharmaceuticals Ltd | Pharmaceuticals & Biotechnology | 0.88 | |
Granules India Limited | Pharmaceuticals & Biotechnology | 0.87 | |
LIC Housing Finance Ltd | Finance | 0.84 | |
Power Grid Corporation of India Ltd | Power | 0.78 | -0.78 |
Tata Consumer Products Ltd | Agricultural Food & other Products | 0.66 | |
Procter & Gamble Hygiene and Health Care Ltd | Personal Products | 0.65 | |
Newgen Software Technologies Limited | IT - Software | 0.62 | |
Tata Consultancy Services Ltd | IT - Software | 0.46 | -0.46 |
Gujarat Ambuja Exports Ltd | Agricultural Food & other Products | 0.45 | |
HDFC Asset Management Company Limited | Capital Markets | 0.43 | |
Bharat Electronics Ltd | Aerospace & Defense | 0.42 | -0.42 |
Indian Oil Corporation Ltd | Petroleum Products | 0.24 | -0.24 |
State Bank of India | Banks | 0.14 | -0.14 |
Eicher Motors Limited | Automobiles | 0.11 | |
Grasim Industries Ltd Partly Paid Up | Cement & Cement Products | 0.02 | |
TREPS, Cash, Cash Equivalents and Net Current Asset | Cash & Cash Equivalents | 30.12 | |
Grand Total | 100 |
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 moderately high risk
We will notify you once Samco Active Momentum Fund - Regular Growth opens for subscriptions.
Enter the OTP received on mobile number +91
Mutual fund investments are subject to market risks, read all scheme related documents carefully.