Momentum: The Follow-The-Trend Factor!

Momentum is the tendency of a stock to keep moving in the direction of its recent trend i.e. a stock which has recently witnessed price strength may keep moving in that direction and vice versa. A stock’s momentum can be determined by calculating its returns over various time periods e.g. by calculating its 6-month and 12-month price return, and adjusting for volatility~. The strategy adapts dynamically to changing market conditions, demonstrating responsiveness to evolving trends.

Investors can get exposure to the Momentum factor by investing in the HDFC Nifty200 Momentum 30 Index Fund and HDFC Nifty200 Momentum 30 ETF (NSE/ BSE symbol: HDFCMOMENT, BSE Scrip Code: 543628). These offerings track the Nifty200 Momentum 30 Index. The Index selects top 30 stocks from the NIFTY 200 Index based on their Normalized Momentum Score. The investment universe is the Nifty 200 Index, hence investors can get exposure to both largecap and midcap stocks through a single product. The Index is rebalanced semi-annually in June and December.

A key feature of the Momentum strategy is how it adapts to changing market leadership. Its recent move (as per the December 2025 index rebalance) into Autos, Metals and Mining (two of the best performing sectors in H2 CY 2025) highlights this feature. Additionally, there has been a significant rotation within holdings in the Financials sector, with several PSU Banks entering and Private Banks exiting. To know more, please click here.

~ For detailed methodology, please visit www.niftyindices.com

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(TRI) or particularly in the ability of the Nifty200 Momentum 30 Index(TRI) to track general stock market performance in India. Please read the full Disclaimers in relation to Nifty200 Momentum 30 Index(TRI) in the SID of the Product.

HDFC Nifty200 Momentum 30 ETF "(the Product)" offered by HDFC Asset Management Company Limited are 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.

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to seek professional advice before investing.

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