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.