Investment Strategy: Why is it the perfect time to invest in Nifty 200 Momentum 30 Index?
Mumbai: For aggressive investors, the recent underperformance of an index fund category that tracks the 30 fastest-rising stocks from the Nifty 200 universe may open up a window to invest gradually at lower levels.
In the past year, the Nifty 200 Momentum 30 Index lost 9.75% against the 10.5% gains in the Nifty. In the last six months, the index lost 10.51%, while the Nifty 50 advanced 3.29%.
“Momentum factor has struggled in the last two quarters as markets came off after hitting a peak in September 2024,” says Prateek Sinha, director, Deep MFD. He said the momentum strategy underperformed in 2009 and 2023 and it lasted for around 10-11 months.
“Once the market finds its rhythm, momentum strategies will outperform again,” said Sinha.”It…
