What is an Active Momentum Fund?
An Active Momentum Fund is a type of investment fund that uses a dynamic strategy to capitalize on trending stocks, sectors, or industries. The fund's portfolio is actively managed by a professional fund manager who seeks to identify and invest in securities with high growth potential.
Investment Strategy
The investment strategy of an Active Momentum Fund typically involves:
1. Identifying Trends: The fund manager uses quantitative models and technical analysis to identify trending stocks, sectors, or industries.
2. Stock Selection: The fund manager selects stocks that have demonstrated strong price momentum and are likely to continue trending upwards.
3. Risk Management: The fund manager actively manages the portfolio's risk exposure by adjusting the weightage of individual stocks, sectors, or industries.
4. Regular Portfolio Rebalancing: The fund manager regularly reviews and rebalances the portfolio to ensure that it remains aligned with the fund's investment objectives.
5. Macro-Economic Analysis: The fund manager considers macro-economic factors, such as interest rates, inflation, and economic growth, when making investment decisions.
Key Benefits
1. Potential for High Returns: Active Momentum Funds have the potential to generate high returns by capitalizing on trending stocks and sectors.
2. Dynamic Risk Management: The fund manager's active risk management approach helps to minimize losses during market downturns.
3. Diversification: Active Momentum Funds typically invest in a diversified portfolio of stocks, sectors, or industries, which can help to reduce risk.
Investor Suitability
Active Momentum Funds are suitable for investors who:
1. Seek High Returns: Investors who are willing to take on higher levels of risk in pursuit of high returns.
2. Have a Medium to Long-Term Investment Horizon: Investors who can afford to hold onto their investments for at least 3-5 years.
3. Are Comfortable with Market Volatility: Investors who can stomach market fluctuations and are not easily intimidated by short-term losses.
Please consult with a financial advisor / Mutual Fund Distributor before investing in an Active Momentum Fund.
Invest in Union Active Momentum Fund:
For Lumpsum Investment Follow this Link
For SIP investment Follow this Link