Enjoy staying up to date with latest trend? Then Momentum investing could be for you!

We often enjoy staying up to date with the latest trends whether in terms of food, fashion, music, recreation etc. We like to experience the rising trend and then move on to the next big trend as it emerges. But is there an investment style which aims to follow the latest trends in the market? Yes, it is called Momentum investing!

Momentum is the tendency of a stock to keep moving in the direction of its recent trend ie. a stock which has recently witnessed price strength may keep increasing and vice versa. Momentum investing seeks to capture this phenomena. This style of investing seeks to build a portfolio of stocks which are trending upwards with less volatility – see below.

Stylized Illustration: Choosing a portfolio of high momentum stocks with less volatility

The above is an illustration for educative purposes only. HDFC AMC is not guaranteeing or forecasting stock selection. For more details visit www.hdfcfund.com.

How to invest in momentum stocks?

Investors can gain exposure to the growth potential of Momentum stocks by investing in the HDFC NIFTY200 Momentum 30 Index Fund:

• It is an open-ended passively managed scheme that aims to replicate the NIFTY200 Momentum 30 Index, with a pre-determined methodology as defined by NSE Indices Ltd.
• The NIFTY200 Momentum 30 Index ('the Index') selects top 30 stocks from the NIFTY 200 Index based on their Normalized Momentum Score
• The Index offers potential exposure to both largecap and midcap stocks through a single product, as its parent index is the NIFTY 200 Index
• The strategy is to adapt dynamically to changing market conditions, demonstrating responsiveness to evolving trends

Historical data demonstrates the Index’s ability to outperform traditional market indices, making it an attractive option for investors seeking long-term growth opportunities. However, investors may also note that that the Index has exhibited higher volatility of returns than broad market indices like the NIFTY 200, NIFTY 50 etc. Sectoral concentration may also be higher as compared to broad market indices.

NIFTY Disclaimer: HDFC NIFTY200 Momentum 30 Index Fund '(the Product)' offered by HDFC Asset Management Company Limited is not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited (IISL)). NSE INDICES LIMITED does not make any representation or warranty, express or implied (including warranties of merchantability or fitness for particular purpose or use) and disclaims all liability to the owners of the Products or any member of the public regarding the advisability of investing in securities generally or in the Product linked to NIFTY200 Momentum 30 Index or particularly in the ability of the NIFTY200 Momentum 30 Index to track general stock market performance in India. Please read the full Disclaimers in relation to NIFTY200 Momentum 30 Index in the SID of the Product.

HDFC Asset Management Company Limited has been managing equity Index Solutions for over 20 years.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.