Kotak MF launches Kotak Nifty 200 Momentum 30 Index Fund; NFO 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, Kotak MF said in a press release.

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.

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% (Source: NSE, Since Apr 2013).

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.”

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

The performance of the index shown does not in any manner indicate the performance of the Scheme. Past performance may or may not be sustained in future, the press release stated.

Investors may consult their financial expert before making any investment decision, it added.