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NFO Period: 29th July – 12th August 2025
The Kotak Active Momentum Fund is here to empower investors with a dynamic and data-backed equity investment strategy. Powered by a model that captures earnings momentum, this fund is more than just another momentum-based product—it’s designed to identify growth ahead of the curve.
What Is Momentum Investing?
Momentum investing is based on the idea that stocks that have performed well in the recent past will continue to do so in the near future. The Kotak Active Momentum Fund goes beyond the traditional price-based approach.
Two Core Types of Momentum:
Price Momentum: Focuses on stocks showing strong upward price trends based on market behavior and investor sentiment.
Earnings Momentum: Identifies companies with rising earnings and strong analyst upgrades. It’s a more fundamentally backed approach to spotting momentum.
Why Choose Factor-Based Investing?
Factor-based investing brings discipline and structure to portfolio construction. Instead of relying on emotions or market noise, it uses defined metrics and patterns to guide investment decisions.
Key Benefits:
- Rules-based selection eliminates human biases
- Balanced risk-reward framework
- Consistency across market cycles
What Sets Kotak Active Momentum Fund Apart?
Unlike funds that only follow price trends, this fund uses the Enhanced Earnings Factor Model, which focuses on:
- Companies showing positive earnings surprises
- Upward revisions in earnings forecasts by analysts
- Strong fundamentals like EPS, EBIT, and sales growth
Universe and Selection Process
The model draws from the top 250 stocks by market cap in the Nifty 500 index. It uses strict criteria to filter out unsuitable stocks.
Elimination Factors:
- Poor governance
- Weak balance sheets or excessive leverage
- Lack of analyst coverage
- Illiquidity or recent IPOs
Final Portfolio:
- 40–50 diversified stocks
- Balanced across large, mid, and small caps
Regularly rebalanced every quarter
Enhanced Earnings Factor Model: How It Works
The fund uses an algorithmic approach that tracks:
- Analyst ratings and earnings estimate upgrades
- Sales and profit growth
- Quarterly results with earnings surprises
- Behavioral factors in due course
This model gives a data-backed edge to stock selection and helps identify upcoming winners.
During Market Crises—Better Downside Protection
The model has demonstrated resilience during major market downturns:
- COVID Crash -35% (vs -37% Nifty 500)
- NBFC Crisis -17% (vs -18%)
- Recent Fall (2024-25) -22% (vs -30%)
Loses less when markets fall.
Why Should You Consider This Fund?
Key Advantages:
- Focuses on earnings momentum, not just stock price
- Uses a rules-based model to remove bias
- Quarterly rebalancing to adapt to market changes
- Diversified across sectors and market caps
- Seeks to generate higher alpha with lower volatility
Managed by experienced fund manager Mr. Rohit Tandon
Investment Details
| Particulars | Details |
| Fund Name | Kotak Active Momentum Fund |
| Fund Type | Open-ended equity scheme (Momentum Theme) |
| Benchmark | Nifty 500 Total Return Index (TRI) |
| Minimum Investment | ₹5,000 (lumpsum) / ₹500 (SIP) |
| Exit Load | 0.5% if exited within 90 days |
| Options | Growth & IDCW (Payout/Reinvestment) |
Riskometer
The fund falls under the “High Risk – High Return” category. Ideal for investors seeking:
- Long-term capital growth
- Willingness to handle equity market volatility
Trust in data-driven momentum strategies
Is This Fund Right For You?
This fund is suitable for:
- Investors with long-term goals like wealth creation or retirement
- Those looking for model-driven investing
- Investors are comfortable with short-term volatility for better long-term returns
SIP investors wanting to benefit from systematic opportunities
Final Thoughts
In a market where emotions often dominate decisions, the Kotak Active Momentum Fund brings a fresh approach—using facts, figures, and fundamentals. With its focus on earnings momentum and disciplined investing, it provides a smart solution for modern investors.
Ready to add active momentum to your portfolio? Consider investing in this NFO before it closes on 12th August 2025.
In a market where emotions often dominate decisions, the Kotak Active Momentum Fund brings a fresh approach—using facts, figures, and fundamentals. With its focus on earnings momentum and disciplined investing, it provides a smart solution for modern investors. Ready to add active momentum to your portfolio? Consider investing in this NFO before it closes on 12th August 2025.
