NJ Momentum Fund - Regular (G)

The investment objective of the Scheme is to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies that exhibit strong momentum characteristics. The strategy is rooted in Factor-based investing, an investment approach that targets specific characteristics-such as quality, value, low volatility, or momentum-that have been identified through empirical research to drive long-term risk and return. Momentum investing is a dynamic, quantitative strategy attempting to capitalize on current market trends. It relies on the principle that securities exhibiting positive price trends over a recent trailing period are likely to maintain their outperformance in the near term. This trend persistence is often driven by behavioral biases such as investor herding, where market participants seek to participate in established trends. The Scheme employs a rule-based active investment framework driven by proprietary protocols designed to identify securities exhibiting positive momentum attributes. This momentum thesis is mathematically and quantitatively built to identify potential investment opportunities where price or earnings trajectories show a consistent upward bias. The model may evaluate momentum through various indicative measures, such as absolute momentum, which considers a security`s own performance; relative momentum, which compares a security against its peers; or scaled momentum, which adjusts the trend for volatility to ensure the move is stable. Additionally, the model may look at earnings momentum, identifying companies that are reporting an improving or strong trajectory in their financial results.