OUR INVESTMENT APPROACH

We Don't Sell Investment
Philosophies. We Build
Investment Systems.

Every buy, sell, and rebalance is driven by quantitative models. No gut feelings. No key-person risk. The system is the strategy.

The SAMCO Doctrine
Follow Momentum. Trust the System. Never Override.
The Factor

Why Momentum?

Momentum, the tendency of rising stocks to keep rising and falling stocks to keep falling, is one of the most persistent and well-documented anomalies in capital markets. It has been observed across geographies, asset classes, and time periods for over two centuries.

200+
Years of Evidence

The momentum effect has been documented in asset prices dating back to the 1800s. Geczy & Samonov (2015) confirmed momentum across equities, bonds, currencies, and commodities over two centuries.

98%
Win Rate (India, 5Y Rolling)

Nifty 500 Momentum 50 has outperformed the Nifty 500 in 98% of all 5-year rolling return periods over the last 20 years. On 3-year rolling: 84%. On 1-year rolling: 75%.

+2.4%
Annual Excess Return (Global)

MSCI World Momentum Index has delivered approximately 2.4% annualised excess return over MSCI World since December 1998 — compounding into a massive divergence over decades.

The Momentum Advantage — Decades of Evidence
MSCI World Momentum vs MSCI World · Rebased to 100 · Gross returns (USD)
MSCI World Momentum
MSCI World
Loading chart…
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Momentum (Rebased)
—
World (Rebased)
—
Momentum Annualised
—
World Annualised
Source: MSCI · Gross returns (USD), Dec 1998 – Mar 2026· Past performance may or may not be sustained in future and is not a guarantee of any future returns. Index returns used for illustration of the momentum factor. Not actual scheme returns. · msci.com
Indian Context

Momentum Factor Comparison in India (20 Years)

Nifty 500 factor indices compared. Historically, Momentum has delivered the highest rolling returns and the highest outperformance frequency across all timeframes.

Momentum
1Y Avg Return28.1%
3Y Avg Return21.4%
5Y Avg Return21.0%
1Y Win Rate75%
3Y Win Rate84%
5Y Win Rate98%
Quality
1Y Avg Return20.7%
3Y Avg Return17.0%
5Y Avg Return17.1%
1Y Win Rate62%
3Y Win Rate69%
5Y Win Rate99%
Low Volatility
1Y Avg Return19.7%
3Y Avg Return16.4%
5Y Avg Return16.2%
1Y Win Rate69%
3Y Win Rate79%
5Y Win Rate100%
₹
Value
1Y Avg Return24.4%
3Y Avg Return18.5%
5Y Avg Return15.6%
1Y Win Rate56%
3Y Win Rate54%
5Y Win Rate96%
Source: SAMCO Research, NSE. Nifty 500 Quality 50, Nifty 500 Low Volatility 50, Nifty 500 Momentum 50, Nifty 500 Value 50. Win rate = % times factor outperformed Nifty 500. Past performance is not indicative of future results.
Indian Factor Performance — 21 Years of Evidence
Nifty 500 Factor Indices · Rebased to ₹1,000 on Apr 1, 2005 · Total Returns
Momentum
Low Vol
Quality
Value
Nifty 500
₹56,600
Momentum
₹24,000
Quality
₹28,400
Low Vol
₹25,300
Value
₹18,800
Nifty 500
Source: NSE, SAMCO Research · Nifty 500 factor indices, Total Returns · Apr 2005 – Mar 2026· Past performance may or may not be sustained in future and is not a guarantee of any future returns. Index returns used for illustration of factors. Not actual scheme returns.
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The System

How We Build Investment Models

We don't sell investment philosophies. We build, test, and deploy investment models. Every model at SAMCO is a complete system, not just a list of what to buy, but a precise answer to four questions.

1
What to Buy

The investment universe. 750+ stocks across large, mid, small, and micro caps are filtered through risk screens to remove illiquid, circuit-hit, and red-flag names.

2
When to Buy

Signal and confirmation system. Our proprietary 'Distinctive Patterns Model' screens the universe for momentum signals. Every signal requires a confirmation before execution.

3
How Much to Buy

Weighting system. Position sizing is algorithmically determined, market-cap agnostic, sector-diversified, risk-controlled. No single conviction override.

4
When to Sell

Switching and exit system. When momentum signals fade, the system generates switch trades automatically. Cash is freed by exiting, not by sitting on the sidelines.

100% model-driven. 100% tested. 0% random.

If any one of these four ingredients is missing, you don't have a systmatic investment approach, you have an opinion.

Proprietary Framework

C.A.R.E. Momentum — Our Signal Architecture

Our momentum signals don't rely on a single dimension. C.A.R.E. captures four distinct layers of momentum, each validated independently, combined for conviction.

C
Cross-Sectional Momentum

Ranks stocks relative to the entire universe. Which stocks are showing the strongest price momentum compared to their peers? The classic Jegadeesh-Titman factor — the foundation of all momentum research.

A
Absolute Momentum

Is the stock rising in absolute terms, not just relative to peers? Absolute momentum acts as a regime filter: it keeps the portfolio in uptrending names and avoids catching falling knives during broad market declines.

R
Revenue Momentum

Is the company's revenue accelerating? Revenue momentum confirms that price momentum is supported by fundamental business growth — not just speculative flow or momentum chasing.

E
Earnings Momentum

Are earnings estimates being revised upward? Earnings momentum captures the analyst revision cycle — stocks with rising estimates tend to continue outperforming as the market prices in the upgrade.

Four signals. One conviction.

A stock must show momentum across multiple C.A.R.E. dimensions to enter the portfolio. Single-signal momentum is noise. Multi-signal momentum is edge.

Portfolio Construction

From Universe to Portfolio — The 4-Stage Pipeline

STAGE 1 STAGE 2 STAGE 3 STAGE 4 Investible Universe Risk Filtering Signal Screening Portfolio Build 750+ stocks across Large, Mid, Small caps Remove illiquid, circuit & red-flag stocks 'Proprietary Distinctive Patterns Model' Market-cap agnostic, sector-diversified 750+ stocks ~500 survive ~50-80 signals 25-40 holdings
STAGE 1
Investible Universe
750+ stocks across Large, Mid, Small caps
750+ stocks
STAGE 2
Risk Filtering
Remove illiquid, circuit & red-flag stocks
~500 survive
STAGE 3
Signal Screening
Proprietary Distinctive Patterns Model
~50-80 signals
STAGE 4
Portfolio Build
Market-cap agnostic, sector-diversified
25-40 holdings
The Doctrine

Never Override

Most fund houses hire star fund managers who make discretionary calls. We replaced discretion with discipline. The system selects. The fund manager executes. There is no "this time is different" exception.

The Traditional Way
Stocks make money — selected by human judgment
Sell-side research identifies ideas
Human-driven — exceptional sometimes, average usually
Strong opinions, strongly held
Performance can be exceptional but unpredictable & cyclical
Key-person risk — what happens when the star leaves?
The SAMCO Way
Systems make money — selected by algorithms
Signals + confirmations identify ideas
Machine-driven — consistently advanced capabilities
Strong opinions, weakly held — the system adapts
Performance is predictable & repeatable by design
Zero key-person risk — the system doesn't resign

Our fund managers are more like scientists than stock-pickers. They design, test, and refine the models. They don't override them. Their incentives are aligned to the system's performance — not to their personal conviction calls.

Honest Assessment

When Momentum Doesn't Work

We believe in being transparent about the risks. Momentum is not a magic formula — it is a factor with a strong long-term edge that occasionally underperforms, sometimes sharply.

Momentum experiences drawdowns during sharp market reversals. When markets crash and then rapidly reverse — as in March 2009, March 2020, or late 2022 — momentum portfolios can lag because they are positioned in the stocks that were rising before the reversal, not the beaten-down names that bounce hardest.

The Nifty 500 Momentum 50 has a maximum drawdown of -70.24% over the last 20 years, higher than Quality (-53.6%) and Low Volatility (-48.3%). Momentum's volatility (22.65% annualised) is also the highest among factors.

But the long-term evidence is unambiguous. Over 5-year rolling periods, momentum has outperformed the Nifty 500 in 98% of observations. The factor rewards patience and discipline — which is precisely what a systematic, non-override process provides.

This is why SAMCO's investment process includes stock-level hedging mechanisms and risk management guardrails designed to reduce the severity of momentum drawdowns while preserving the factor's long-term return advantage.

How SAMCO Manages Momentum Risk
Stock-level hedging during momentum downturns to protect against sharp drawdowns
More frequent rebalancing during high-volatility periods to reduce extreme drawdowns
Sector diversification rules that prevent over-concentration in momentum's favoured sectors
9 uncorrelated strategy models across funds, each with different return and drawdown profiles
Momentum Drawdowns & Recoveries — 21 Years
Nifty 500 Momentum 50 · Drawdown from peak · Apr 2005 – Mar 2026
2008 Global Crisis
-68.4%
Recovery: 66 months
Worst-case scenario in 21 years
2020 Covid Crash
-28.7%
Recovery: 6 months
Sharp drop, rapid bounce
2022 Rate Shock
-23.0%
Recovery: 11 months
Orderly correction, steady recovery

Every drawdown in 21 years has been followed by full recovery. The system doesn't panic — it rebalances. Source: NSE, SAMCO Research. Past performance may or may not be sustained in future and is not a guarantee of any future returns

Proprietary Tool

EMOSI — Equity Margin of Safety Index

SAMCO's proprietary indicator that oscillates between 0–200, helping investors decide how much to allocate to equities at any point. The higher the EMOSI, the more favourable the risk-reward for equity investment.

108
EMOSI Score · 28 Apr 2026
Continue Investing

Current EMOSI reading is in the High zone (105–119), indicating a favourable risk-reward for equity investment. Continue with planned allocations.

0–79
Invest Very Cautiously
80–94
Invest Cautiously
95–104
Continue Accumulation
105–119 ●
Continue Investing
120–200
Invest Very Aggressively

EMOSI is derived from multiple fundamental and technical factors — P/E ratios, G-sec yields, moving average divergences, and more. Higher EMOSI = more favourable risk-reward for equity.

Check Today's EMOSI Reading →
The Architects

The People Behind the System

Every great system has architects who designed it, tested it, and committed to never overriding it.

Jimeet Modi
Jimeet Modi
Founder, Group CEO & Associate Director of Samco AMC

Mr. Jimeet Modi is a Rank Holder Chartered Accountant and Founder & CEO of the SAMCO Group. Under his leadership, SAMCO operates under a wide range of financial service businesses including equity and commodity broking, depository services, equity research, mutual fund research and distribution. He has a career spanning over 15 years with rich experience in equity research, investment analysis and technology.

Umeshkumar Mehta
Umeshkumar Mehta
Chief Investment Officer & Executive Director

Mr. Umeshkumar Mehta has over 26 yearsof experience in Indian Capital Markets. Hisrole involves overseeing investmentstrategies and managing assets acrossdiverse portfolios. He has profoundknowledge of financial markets, believes indata driven approach to investments anddraws lessons from financial marketshistories. He used to lead the Samco group’sResearch team. He has been associated withthe group for the last fifteen years. He is anCA and MBA by qualification.

Meet the Full Team →
Common Questions

Frequently Asked Questions

What exactly is momentum investing?
Momentum investing is a factor-based strategy that systematically buys stocks with strong recent price performance and sells (or avoids) stocks with weak performance. The premise is supported by decades of academic research: stocks that have been rising tend to continue rising over the medium term (6–12 months). It is not the same as trend-following or technical analysis — it is a quantitative, evidence-based approach to capturing a persistent return premium in equity markets.
How is SAMCO different from other momentum funds in India?
Most Indian AMCs that offer momentum products treat momentum as one strategy among many. SAMCO is built entirely around momentum — it is our core identity, not a product extension. Our entire investment process is algorithmic and model-driven. We don't have star fund managers making discretionary calls. Every buy, sell, and rebalance is generated by quantitative models that we have built, tested, and refined. We also run 9 distinct uncorrelated strategy models, each with different return and drawdown profiles.
What happens when momentum underperforms?
Momentum can underperform during sharp market reversals — when beaten-down stocks bounce and recent winners sell off. This is a known characteristic of the factor. However, over 5-year rolling periods, India's Nifty 500 Momentum 50 has outperformed the Nifty 500 in 98% of observations. SAMCO manages this risk through stock-level hedging, more frequent rebalancing during high-volatility periods, and sector diversification rules. The key is staying invested through the cycles, which is precisely what a systematic, non-override process enables.
Does the fund manager ever override the algorithm?
Our process is ~100% systematic. The fund manager's role is to execute the model's signals faithfully, monitor risk parameters, and ensure regulatory compliance — not to second-guess the system. In extremely rare cases (e.g., corporate governance red flags that the quantitative model cannot detect), disciplined guardrails exist. But the default is always: trust the system, never override.
Isn't momentum just buying expensive stocks?
No. Momentum is about price trend, not valuation. A stock can have strong momentum and still trade at reasonable valuations — for example, a cyclical recovery story where earnings are improving faster than the stock price. The academic evidence shows that momentum's return premium is distinct from value, quality, and size factors. In fact, combining momentum with other factors like quality or low volatility has historically improved risk-adjusted returns.
What is EMOSI and how should I use it?
EMOSI (Equity Margin of Safety Index) is SAMCO's proprietary indicator that ranges from 0–200. It synthesises multiple market signals to indicate whether equity markets offer a favourable risk-reward. Higher EMOSI readings (120–200) suggest a better time to increase equity exposure; lower readings (0–80) suggest caution. EMOSI is designed as a lumpsum timing guide — it helps investors decide how much to allocate, not which stocks to buy. Check the live EMOSI Reading Here
Is SAMCO only for aggressive investors?
No. While our equity momentum strategies carry "Very High" risk ratings (as all pure equity funds do), we also offer the Samco Multi Asset Allocation Fund, which dynamically rotates between equity, gold, and debt based on our R.O.T.A.T.E. strategy — providing a more moderate risk profile. We also have the Samco Overnight Fund and Samco Arbitrage Fund for conservative allocations.Most of our strategies, systematic, model-driven, never discretionary.
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