Some stocks managed to break out of their barriers and gained momentum on the charts after the Budget announcement
These new midcap stocks got relatively high momentum score among the peers within the Nifty 200 basket over the last one year
A Moneycontrol personal finance study shows that different smart-beta funds can have common stocks. It implies that these stocks possess the characteristics of different factors
Momentum strategy follows a ‘buy high and sell higher’ approach of investing and exhibits high volatility in the short term. Investors with a high risk profile and long-term view can allocate 10-15 percent of their portfolio to momentum strategy. About 12 mutual fund schemes offer this play
These midcap stocks scored relatively high momentum score as they have outperformed the peers in Nifty 200 basket over the last one year. To reduce the risk levels that come with momentum strategy, some fund houses have launched momentum index funds
Public-sector entities like NTPC, Bharat Electronics and Bank Of Baroda are now part of the Nifty200 Momentum 30 index, which appeals to the high-risk investor. Economic recovery has been an energy booster to the otherwise slow-moving Public Sector Undertaking (PSU) stocks
There are two mutual fund (MF) schemes that follow the momentum strategy by keeping an eye on the market trends for faster returns. To reduce fund manager risks, these come wrapped in a factor-based approach. UTI Nifty200 Momentum 30 Index Fund and Motilal Oswal Nifty 200 Momentum 30 ETF are the two MF schemes that follow this strategy
Of the 30 index constituents 15 stocks were replaced with new picks
The Nifty200 Momentum 30 Index captures the performance of the top 30 companies with high momentum