Nippon India Active Momentum Fund NFO: A Detailed Review


Nippon India Mutual Fund has launched a new offering—the Nippon India Active Momentum Fund, an open-ended equity scheme that aims to generate long-term capital appreciation. The fund follows a momentum-based investment strategy, identifying stocks that demonstrate strong price and earnings momentum.

With the increasing popularity of momentum investing, this fund presents an opportunity for investors looking to capitalize on market trends. Let’s take a closer look at the key aspects of this fund, including its investment strategy, features, suitability, and potential benefits.

Investment Strategy of Nippon India Active Momentum Fund

The Nippon India Active Momentum Fund employs a multi-factor quantitative approach to identify stocks with high growth potential. The core strategy revolves around momentum investing, which focuses on stocks that exhibit:

  1. Price Momentum: Stocks that have been consistently trending upwards over a period, indicating strong market demand.
  2. Earnings Momentum: Companies experiencing positive earnings revisions based on expert forecasts and market sentiment.

In addition to momentum-based stock selection, the fund incorporates risk management factors, including:

  • Minimum Volatility: To reduce sharp drawdowns in turbulent markets.
  • Beta Adjustments: To maintain a balance between high-risk and stable stocks.

This dynamic approach ensures that the fund not only captures growth opportunities during market uptrends but also mitigates risks during downtrends.

Key Details of the Nippon India Active Momentum Fund

1. NFO Subscription Period

  • Opens on: February 10, 2025
  • Closes on: February 24, 2025
  • Reopens for Regular Transactions: March 6, 2025

2. Minimum Investment

  • Investors can start with a minimum of ₹500 and in multiples of ₹1 thereafter.

3. Fund Management Team

  • Mr. Ashutosh Bhargava and Ms. Kinjal Desai will manage the fund, bringing their extensive experience in equity investments and momentum strategies.

4. Benchmark Index

  • The fund is benchmarked against the Nifty 500 Total Return Index (TRI), which represents a broad-based and diversified portfolio of stocks across various sectors.

5. Exit Load

  • 1% exit load if units are redeemed or switched out within one year from the date of allotment.
  • No exit load if redeemed after one year.

Who Should Invest in Nippon India Active Momentum Fund?

This fund is designed for investors with a high-risk appetite who want to take advantage of momentum investing while benefiting from an actively managed strategy. It is suitable for:

✔️ Investors looking for long-term capital appreciation.
✔️ Those who are comfortable with market fluctuations and short-term volatility.
✔️ Individuals seeking exposure to stocks with strong price and earnings momentum.
✔️ Investors with a minimum investment horizon of 3-5 years.

Momentum investing can lead to strong returns, but it also comes with risks, as trends can reverse quickly. Hence, investors should have a long-term perspective and a well-diversified portfolio.

Potential Benefits of Investing in This Fund

  1. Momentum-Based Growth Potential

    • The fund selects stocks that have demonstrated strong upward trends, potentially maximizing gains.

  2. Actively Managed for Better Risk Control

    • Unlike passive momentum strategies, this fund actively monitors and adjusts the portfolio to manage downside risks.

  3. Diversification Across Sectors

    • By investing in stocks from various sectors, the fund reduces the impact of volatility in any single industry.

  4. Quantitative Approach to Stock Selection

    • The use of advanced quant models ensures that only fundamentally strong and high-momentum stocks are included.

  5. Ideal for Investors Seeking Trend-Driven Returns

    • Investors who understand momentum investing and want to capitalize on market trends can benefit from this fund.


The Nippon India Active Momentum Fund is a unique offering that combines the power of momentum investing with active risk management. It aims to provide superior returns by identifying high-growth stocks based on price and earnings trends.

However, since momentum investing can experience short-term volatility, this fund is best suited for investors with a high-risk tolerance and a long-term investment horizon. If you are looking for a well-managed, momentum-based fund, this NFO could be a good addition to your portfolio.

📌 Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.

Comments

Post a Comment

Popular posts from this blog

SBI MITRA SIP. A Powerful tool for your Retirement Planning

Image
  (A powerful tool for potential wealth creation through SIP +  Financial Independence through SWP) SBI Mutual Fund has launched an unique product named SBI MITRA SIP. Earlier this type of scheme was launched by ICICI Prudential Mutual Fund named FREEDOM SIP . This product has the unique feature that will match the clients long term goals like retirement planning. This product enables client to create wealth in long term through Systematic Investment Plan (SIP) and subsequently the accumulated corpus can be withdrawn as monthly pay out through Systematic Withdrawal Plan(SWP). Its a powerful combination of systematic investment approach through SIP and monthly income generation through SWP. What is SBI MITRA SIP? MITRA SIP is a unique tool that is a combination of potential wealth creation and systematically reaping benefit of the same. You have to register for a SIP from a number of source schemes to choose from for 8/10/12/15 years and simultaneous registration of  ...
Read more

HDFC Dream SIP | How to invest in HDFC Dream SIP?

Image
Big dreams can often seem overwhelming and unattainable, but the truth is that they can be achieved with a simple plan. A simple  plan is a step-by-step approach that breaks down a big dream into small, manageable tasks. This approach helps individuals to focus on one task at a time, making it easier to achieve the overall goal. The key is to be patient, persistent, and consistent in following the plan. By taking small steps towards a big dream, individuals can achieve their goals and turn their dreams into reality. HDFC mutual fund brings a unique plan called "HDFC DREAM SIP" that will help you achieve your goal with ease and that can make you financially free. Before we know the details about the HDFC Dream SIP, let's know what a SIP is. SIPs allow investors to invest in small amounts of money at regular intervals, providing the benefit of compounding, and reducing the overall risk of investing. Investing in a Systematic Investment Plan (SIP) is one of the most convenie...
Read more

How the 15x Insurance Rule Can Safeguard Your Future?

Image
The "15x insurance rule" is a straight forward guideline for individuals seeking to determine their life insurance coverage needs. Rather than a rigid rule, it serves as a starting point to help people assess their financial protection requirements. Here's an original explanation of the concept: The 15x insurance rule is a simplified approach to estimating your life insurance coverage needs. It suggests that you should aim to have life insurance coverage worth 15 life insurance coverage worth 15 times your annual income. While not a one-size-fits-all solution, it provides a basic framework to assess how much protection you may require. To use this rule, calculate your annual income and then multiply it by 15. The resulting figure is a rough estimate of the death benefit your life insurance policy should provide. However, it's important to consider several factors that can impact your unique situation: Debt: Account for any outstanding debts like mortgages,...
Read more