Axis AMC launches Axis Momentum Fund

representative image

Axis Mutual Fund has announced the launch of an NFO for its Axis Momentum Fund.

According to the Fund House, in recent years, momentum as a strategy has gained popularity as as an investment strategy across the world including in India. The strategy, they explained, is focused on investors who are increasingly looking to capitalize on market trends and growth opportunities.

Speaking at the launch, Ashish Gupta, CIO-Axis Mutual Fund explained that the active momentum fund offers a unique approach to investing, focusing on stock price trends rather than traditional fundamental metrics like earnings, return on equity (ROE), or income.

Momentum funds, Gupta added, also has the benefit to adapt to various market conditions. "If the trend shifts towards defensive stocks, the fund will adjust accordingly, making it versatile across different market environments," he explained.

On the benefits of an active fund over passive fund in the momentum strategy, Gupta noted: "Unlike passive momentum indices, which rebalance every six months, active management allows us to respond quicker to market changes and avoid stocks with liquidity risks."

The Fund will be benchmarked against the Nifty 500. Stocks will be filtered on the basis of returns and liquidity.

According to Axis AMC data, 83 percent of the times in the last 18 calendar years,  momentum as a strategy has outperformed Nifty 500.

The fund allocates 80-100 percent of its investments to equity and equity-related instruments of companies selected based on the momentum theme.

The NFO will be open from November 22 to December 6.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.