Nippon Life India Asset Management (NAM India), asset manager of Nippon India Mutual Fund (NIMF), on Thursday announced the launch of Nippon India Active Momentum Fund — an open-ended equity scheme that aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments.
The NFO will open on February 10 and close on February 24. The minimum investment amount is ₹500 and in multiples of ₹1 thereafter. The benchmark of the Fund is Nifty 500 TRI.
Saugata Chatterjee, Chief Business Officer, Nippon India Mutual Fund, said, “The Nippon India Active Momentum Fund brings a differentiated offering to the market by harnessing the alpha potential of momentum along with risk mitigation factors to reduce the volatility and improve the investment experience. This strategic blend attempts to ensure that investors are riding high-quality momentum with reduced risk. As an asset manager it’s our constant endeavour to provide investors with differentiated product strategies which can be considered by investors as per their risk appetite and investment goals.”
The fund will attempt to benefit from blend of market wisdom (price momentum/technical views) and (earnings revisions/fundamental research) factors. Further, the fund may employ additional factors such as minimum volatility and beta which can potentially help in reducing the portfolio risk during downtrends and better upside capture during market uptrend, it said in a statement.