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Tata Mutual Fund launches Nifty Midcap 150 Momentum 50 Index Fund

Tata Mutual Fund launches Nifty Midcap 150 Momentum 50 Index Fund


Tata Mutual Fund has launched Tata Nifty Midcap 150 Momentum 50 Index Fund, an open-ended scheme replicating/tracking NIFTY Midcap 150 Momentum 50 Index. The New Fund Offer (NFO) opens on October 4 and will close on October 17.

Tata Nifty Midcap 150 Momentum 50 Index Fund will invest in securities covered by NIFTY Midcap 150 Momentum 50 Index with 95%-100% allocation, debt and money market instruments upto 5% allocation and will be benchmarked against NIFTY Midcap 150 Momentum 50 Index (TRI).

“Momentum strategy takes into consideration the past price performance of the stock over a defined period. We believe that price outperformance of a stock captures a lot of good around the stock, hence once a trend is well-established, it may be likely to continue. A carefully crafted investing strategy may provide the confidence necessary to continue with the methodology in all time frames of the market. Our cost-efficient offering through an Index Fund, makes an opportunity for long-term equity investors,” said Sailesh Jain, fund manager, Tata Asset Management.



“Over the past 5 and 10 years, many mid-cap stocks have turned into multi-baggers. However, the midcap segment exhibits a large dispersion of returns, creating the need for a filter to select potential outperformers. This is where Momentum Investing comes in. The simple Physics definition of Momentum: Momentum = Mass * Velocity. In fund parlance it will be Stock weights * Price performance adjusted for volatility. Midcap coupled with momentum as a filter,” said Anand Vardarajan, Business Head- Banking, Alternate Products and Product Strategy.



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