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Fri, November 29, 2024

Active momentum funds gather steam as large fund houses enter the fray


Published on 2024-11-29 02:31:10 - Thomas Matters, WOPRAI
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  • While the debate around active versus passive approach continues, both factions agree that momentum strategies come with inherent risks.

The article from Moneycontrol discusses the growing popularity of Active Momentum Funds in India, driven by the entry of major mutual fund houses like ICICI Prudential, Nippon India, and Kotak Mahindra. These funds aim to capitalize on the momentum of stocks, focusing on those that have shown significant price increases over a specific period. The strategy involves buying stocks that are performing well and selling those that are not, based on the belief that stocks will continue their trend in the short term. The article highlights that while these funds have attracted investor interest due to their potential for high returns, they also come with increased risk due to their volatile nature. The launch of such funds by large asset management companies indicates a broader acceptance and interest in momentum investing strategies within the Indian mutual fund market.

Read the Full moneycontrol.com Article at [ https://www.moneycontrol.com/news/business/markets/active-momentum-funds-gather-steam-as-large-fund-houses-enter-the-fray-12878788.html ]
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