Fund Objective
To generate long-term capital appreciation by investing in Equity & Equity related instruments of companies reflecting momentum factors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Notes
The Scheme follows active momentum strategy. The Scheme intends to generate long term capital appreciation by investing in broad range of companies & minimize risk through reasonable diversification. The Scheme will apply filters to the benchmark universe, based on risk, governance, etc. criteria to narrow down the investable universe of stocks. Further, a proprietary momentum model will be used for stock-picking. The model uses factors based on price momentum and estimates momentum. Price momentum identifies stocks with favorable price trends across different time periods and risk-adjusted returns. Estimates momentum selects stocks basis their earnings revisions & trends in analyst ratings for the stocks. The model and portfolio shall be reviewed by the Fund Manager on a periodic basis and accordingly suitable changes shall be carried out. The changes in the portfolio pursuant to the review may involve both sale and purchase, both partial and complete, of the existing stocks and purchase of new stocks, if any. The Scheme may use derivative instruments like Stock / Index Futures or Options, Interest Rate Swaps, Interest Rate Futures, Forward Rate Agreements or other instruments for the purpose of hedging, portfolio balancing and other purposes, as permitted under the Regulations. Hedging using Interest Rate Futures could be perfect or imperfect, subject to applicable regulations. Usage of derivatives may expose the Scheme to certain risks inherent to such derivatives. For complete details on erivative Strategies` kindly refer to SAI. The Scheme may also invest up to 35% in overseas markets in equity & equity related instruments including Global Depository Receipts (GDRs), ADRs, foreign securities, bonds and mutual funds and such other instruments as may be allowed under the Regulations from time to time. Further, the Scheme may invest in other schemes managed by the AMC or in the schemes of any other Mutual Funds in terms of the prevailing Regulations. As per the Regulations, no investment management fees will be charged for such investments. The Scheme may also invest in Debt and Money Market Securities/Instruments. The Scheme may also take exposure to Units of debt Mutual Fund schemes. The Scheme aims to identify debt/ money market securities which offer optimal level of yields/returns, considering risk-reward ratio. With the aim of controlling risks, rigorous in depth credit evaluation of the securities proposed to be invested in will be carried out by the Risk Management Team of the AMC. The credit evaluation includes a study of the operating environment of the issuer, the short as well as long-term financial health of the issuer. Rated debt instruments in which the Scheme invests will be of investment grade as rated by a credit rating agency. The AMC may consider the ratings of such Rating Agencies as approved by SEBI to carry out the functioning of rating agencies. The Scheme may invest in securitised debt. The Scheme may also undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed. For the present, the Scheme does not intend to enter into underwriting obligations. However, if the Scheme does enter into an underwriting agreement, it would do so after complying with the Regulations and with the prior approval of the Board of the AMC/Trustee. The Scheme may invest in units issued by REITs & InvITs and other permissible asset classes.