Mumbai, June 12, 2023 – SAMCO Asset Management Private Limited, a distinguished investment management firm, is thrilled to announce the launch of India’s first actively managed momentum fund – SAMCO Active Momentum Fund. Leveraging the persistent and globally acclaimed momentum anomaly in finance, this pioneering fund aims to deliver exceptional risk-adjusted returns to investors, tapping into the immense potential of momentum investing in the Indian market.
The Nifty 200 Momentum 30 index has achieved an impressive compound annual growth rate (CAGR) of 17.79% over 18 years, outperforming the broader Nifty 50 and Nifty 500 indices. Similarly, the Nifty Midcap 150 Momentum 50 index has achieved an exceptional CAGR of 21.28% since its inception. Moreover, when compared to the MSCI World Index, which produced 10x returns, the MSCI World Momentum Index delivered a commendable 20x return.
(Disclaimer: Past returns are no indication of future returns. The index returns do not indicate returns of any scheme and are only mentioned for illustration of momentum as a factor. Price data for MSCI World Index and MSCI Momentum index from June 1994 till March 2023. For Nifty Indices – Returns mentioned are CAGR returns from 1st April 2005 till 28th April 2023.)
Based on this extensive market research and a proven track record, SAMCO MF launches India’s 1st active momentum fund that utilizes these insights offering investors an opportunity to tap into the remarkable growth potential that market momentum can provide.
Extensive historical research conducted by MSCI World Momentum Index substantiates that the Momentum factor has consistently proven itself as one of the most potent generators of alpha. Building upon this powerful investment strategy, SAMCO Active Momentum Fund meticulously selects stocks with momentum characteristics such as breakouts, price leadership, and more, deploying a proprietary momentum-seeking algorithm. By capitalizing on the prevailing price trends, the fund aims to outperform the market and generate superior returns for investors.
Umesh Kumar Mehta, Chief Investment Officer (CIO), SAMCO Asset Management Private Limited, said, “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 investible 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.”
The fund manager for SAMCO Active Momentum Fund is Mr. Paras Matalia, a seasoned investment professional with a deep understanding of momentum-based strategies. With his expertise and experience, Mr. Matalia will oversee the fund’s investment decisions and work towards maximizing returns for investors.
Commenting on the launch, Viraj Gandhi, CEO, SAMCO Asset Management Private Limited, said, “We are excited to introduce SAMCO Active Momentum Fund as India’s first actively managed Momentum Fund and this represents an exciting step forward for the Indian investment landscape. We believe this fund will open new avenues for investors seeking to benefit from momentum investing. With our dedicated team and a robust investment strategy, we are confident in delivering value to our investors.”
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.
There are several advantages that active management offers in momentum investing:
| Particulars | Active Management | Passive Management |
| Exposure management in times of momentum & anti- momentum | Invested only during times of Momentum, hedged when there is Anti-Momentum | Invested 100% of times |
| Speed & Agility in Rebalancing | As and when needed | Currently lagged at 6-months |
| Stock Selection basis Relative & Absolute momentum | Uses both Relative & Absolute Momentum | Uses only Relative Momentum |
| Number of stocks in portfolio | Not fixed, based on capital and position sizing | Capped at 50 currently |
| Universe for Identification of opportunities | Nifty 750 stocks | Limited universe only |
SAMCO Asset Management Private Limited takes immense pride in introducing this time-tested investment strategy for the first time to Indian investors, offering them the opportunity to unlock the potential of momentum investing.
For more information about SAMCO Active Momentum Fund and the NFO, please visit our website at https://www.samcomf.com/active-momentum-fund.
