SAMCO Launches Active Momentum Fund; NFO Begins On June 15 The fund will be managed by Paras Matalia, who will oversee the fund's investment decisions and work towards maximizing returns for investors
By Teena Jose
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Investment management firm, SAMCO Asset Management Private Limited, has announced the launch of an actively managed momentum fund - SAMCO Active Momentum Fund. According to an official release, the fund aims to deliver exceptional risk-adjusted returns to investors, tapping into the immense potential of momentum investing in the Indian market.
It also added that Samco Active Momentum Fund will select stocks with momentum characteristics such as breakouts, price leadership, and more, deploying a proprietary momentum-seeking algorithm. The fund will be managed by Paras Matalia, who will oversee the fund's investment decisions and work towards maximizing returns for investors.
"Historically, the momentum factor, or the phenomena based on persistence of stock price trends has been one of the strongest return generators. In Momentum investing, active management offers several unique advantages such as a wider investable universe, quicker rebalancing and hedging flexibility during periods of anti-momentum. By investing in stocks exhibiting momentum characteristics, we aim to offer our investors the potential for superior risk-adjusted returns," said Umesh Kumar Mehta, chief investment officer (CIO), SAMCO Asset Management Private Limited.
As per the company's statement, the New Fund Offering (NFO) from SAMCO Active Momentum Fund commences on June 15, 2023, and concludes on June 29, 2023. During this period, investors can position their portfolios to benefit from the Momentum factor. An important point for the investors to keep in mind is that the subscriptions will not be accepted after the NFO period until further notice. Furthermore, only those Systematic Investment Plans (SIPs) registered during the NFO period will be accepted, with fresh SIP registrations will temporarily be restricted post NFO until further notice.
Also, the benchmark index for the fund is Nifty 500 Index TRI. The fund's minimum application amount is INR 5,000 and the minimum Systematic Investment Plan (SIP) amount is INR 500.
