The momentum strategy is based on buy high, sell higher or alternatively, cut your losses and let your winners run, the Samco MF filing noted.

Momentum stocks are such that exhibit positive price momentum - based on the phenomenon that stocks which have performed well in the past relative to other stocks (winners) continue to perform well in the future, and stocks that have performed relatively poorly (losers) continue to perform poorly, the filing stated.

The fund intends to benefit from momentum in stock prices from short to medium term time frame. The fund makes trades based on trading signals generated by algorithm, which has been developed by studying years of market data including price, volume, volatility, open interest, breakouts, relative strengths and correlations with appropriate weights on various data points, it added.

The scheme may seek investment opportunities in foreign securities including ADRs/GDRs/foreign equity subject to SEBI (MF) Regulations. Such investment shall not exceed 20% of the net assets of the scheme.

The scheme will be benchmarked against Nifty 500 Index total returns index.

According to the scheme information document, the minimum application amount during new fund offer will be Rs 5,000 and in multiples of Re 1 thereafter. Minimum additional purchase amount is Rs 500 and in multiples of Re 1 thereafter. The scheme's riskometer states that the scheme will fall in the 'very high risk' category.

The fund will be managed by Paras Matalia. Further, Dhawal Ghanshyam Dhanani is the dedicated fund manager for making overseas investments as permitted under the Regulations, guidelines and circulars issued from time to time.

Paras Matalia, aged 28, is a qualified Chartered Accountant, and has cleared 2 levels of CFA (US) and has done his bachelor's from R. A. Podar College of Commerce and Economics.

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