Ch.10 · Risk Measures and Ratios · medium
What is 'momentum' as an investment factor in equity mutual funds?
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EXPLANATION
Momentum is an investment factor where stocks with strong recent price performance tend to continue outperforming in the near term. Momentum factor funds (under SEBI's thematic category) specifically target high-momentum stocks. The risk is that momentum can reverse sharply during market corrections, causing high-momentum portfolios to fall more than the market.
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