Kotak Mahindra AMC Unveils New Index Fund Targeting Midcap Momentum Stocks

Kotak Mahindra AMC Unveils New Index Fund Targeting Midcap Momentum Stocks

Kotak Mahindra Asset Management Company (KMAMC) has introduced the Kotak NIFTY Midcap 150 Momentum 50 Index Fund, an open-ended scheme designed to replicate the performance of the NIFTY Midcap 150 Momentum 50 Index. The fund’s new fund offer (NFO) is open for public subscription until October 3, 2024.

This index fund aims to track the top 50 midcap companies from the Nifty Midcap 150 Index, chosen based on their momentum scores. These scores reflect companies with strong price performance over the past six to twelve months. By focusing on momentum investing, this fund seeks to capitalize on stocks that have shown a significant upward trend in price movements, offering investors the potential to benefit from sustained stock market growth in the midcap segment.

The NIFTY Midcap 150 Momentum 50 Index selects companies that exhibit consistent momentum, making it an attractive option for investors seeking exposure to midcap stocks with recent positive performance trends. Midcap stocks are generally viewed as companies with high growth potential, and the momentum strategy leverages this by focusing on those with strong recent performance.

Speaking on the launch, Nilesh Shah, Managing Director of Kotak Mahindra AMC, said, "This new fund aligns with our broader strategy of providing a balanced mix of both active and passive investment options. It systematically targets midcap companies through a momentum-based strategy, offering investors the growth potential of these stocks with minimal need for active management."

Adding further insights, Devender Singhal, Executive Vice President and Fund Manager at Kotak Mahindra AMC, noted, "Historically, the NIFTY Midcap 150 Momentum 50 Index has outperformed other midcap indices, making this fund a disciplined option for investors. It caters to those looking for a systematic investment strategy focused on high-growth midcap stocks."

With the midcap segment continuing to draw interest for its growth opportunities, this new fund offers investors a chance to engage with a dynamic market sector while leveraging the benefits of momentum investing. The Kotak NIFTY Midcap 150 Momentum 50 Index Fund provides a structured pathway for those looking to participate in the upward movement of midcap stocks without the need for heavy active management.