Kotak MF launches Kotak Nifty 200 Momentum 30 Index Fund – Check details

Kotak Mahindra Asset Management Company Ltd (Kotak Mahindra Mutual Fund) today announced the launch of Kotak Nifty 200 Momentum 30 Index Fund, an open-ended scheme replicating/ tracking the Nifty 200 Momentum 30 Index.

The NFO opens for subscription on May 25, 2023 and closes on June 8, 2023.

Nifty 200 Momentum 30 Index aims to track the performance of the top 30 companies within the Nifty 200, selected based on their Normalized Momentum Score. This Normalized Momentum Score is determined by 6-month and 12-month price return, adjusted for volatility. This selection offers investors exposure to momentum stocks across market capitalizations and diverse sectors.

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In the past decade until April 28, 2023, the Nifty 200 Momentum 30 TRI yielded a 20% CAGR, surpassing the Nifty 200 TRI’s 14%.

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. 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.”