July 9, 2026
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About NJ Momentum Fund
The NJ Momentum Fund is an open-ended thematic equity fund that seeks to generate long-term capital appreciation by predominantly investing in equity and equity-related securities of companies exhibiting strong price momentum.
Unlike passive momentum index funds, this scheme follows an actively managed momentum strategy, allowing the fund managers to identify companies demonstrating sustained earnings strength, improving business fundamentals and positive price trends across large-cap, mid-cap and small-cap segments.
The fund uses the broad NIFTY 500 TRI as its benchmark, giving the investment team flexibility to capture momentum opportunities across the Indian equity market rather than restricting itself to a particular market-cap segment.
Investment Objective
The scheme seeks to generate long-term capital appreciation by predominantly investing in equity and equity-related instruments of companies that exhibit strong momentum.
Benchmark Explained
The NIFTY 500 Total Return Index (TRI) is India’s broadest diversified equity benchmark, comprising the top 500 listed companies across large-cap, mid-cap and small-cap segments.
Unlike narrow thematic or sector indices, the NIFTY 500 TRI represents nearly the entire listed Indian equity universe while also accounting for dividend income through its Total Return Index methodology.
Since the NJ Momentum Fund actively selects momentum stocks from this diversified universe, the benchmark provides an appropriate reference for measuring the effectiveness of the fund managers’ stock selection process.
Benchmark Performance
Historically, the NIFTY 500 TRI has generated attractive long-term returns by capturing India’s overall economic and corporate earnings growth. During broad-based bull markets, it has outperformed narrower indices because of its diversified exposure across sectors and market capitalisations.
Momentum investing has historically outperformed broad market indices during sustained uptrends, but can underperform during sharp corrections and volatile sideways markets.
Sahifund Interpretation
The combination of an actively managed momentum strategy with the diversified NIFTY 500 TRI benchmark provides significant flexibility to identify emerging market leaders. However, investors should expect periods of higher volatility and occasional underperformance during rapidly changing market conditions.
Fund Managers
Dhaval Patel
- IBS, Hyderabad
- Joined NJ Mutual Fund in July 2026.
- Previously associated with Axis Mutual Fund and CARE Ratings (Credit Analysis & Research Ltd.)
Viral Shah
- B.E.
- MBA (Finance)
- More than 10 years of experience managing Portfolio Management Services (PMS) at NJ Asset Management.
Sahifund Interpretation of the Fund Managers
Unlike passive factor funds, the NJ Momentum Fund relies heavily on the fund managers’ ability to identify stocks with sustainable momentum while managing portfolio risk.
Dhaval Patel brings institutional mutual fund and research experience from reputed financial organisations, while Viral Shah contributes extensive portfolio management expertise developed through NJ’s PMS business.
Although both managers possess relevant experience, this remains a new fund without a live performance record, making execution over multiple market cycles the key factor to monitor.
Risk Factors
- Momentum investing may underperform during volatile or sideways markets.
- Very High equity market risk.
- Higher portfolio turnover may increase transaction costs.
- Performance depends significantly on the fund managers’ stock selection.
- Mid-cap and small-cap exposure may increase volatility.
- No historical track record for this NFO.
NFO Positives
- Active momentum investing strategy.
- Broad investment universe through the NIFTY 500.
- Flexibility to invest across market capitalisations.
- Experienced investment professionals.
- Low minimum investment of Rs. 500.
- Suitable for long-term wealth creation.
- No lock-in period.
NFO Negatives
- New fund without performance history.
- Very High Risk.
- Momentum strategies can witness sharp drawdowns.
- Active strategy introduces fund manager risk.
- High portfolio churn is expected.
- Not suitable for conservative investors.
Similar Funds
- Motilal Oswal BSE 200 Momentum 30 Index Fund
- Bandhan BSE Momentum Index Fund
- Mirae Asset BSE Midcap 150 Momentum 30 ETF
- Motilal Oswal BSE Midcap 150 Momentum 30 ETF
- DSP Quant Fund
- Nippon India Active Momentum Fund (where available)
Final Sahifund Verdict
The NJ Momentum Fund offers investors an actively managed approach to momentum investing, providing flexibility to identify high-performing stocks from the broad NIFTY 500 universe. This differentiates it from passive momentum index funds by allowing the investment team to adapt portfolio positioning as market trends evolve.
The strategy has the potential to outperform over complete market cycles, particularly during sustained bull markets. However, investors should remember that momentum investing can be volatile, and this being a new scheme, there is no live performance history to evaluate execution capability.
The fund is best suited as a satellite allocation within a diversified equity portfolio rather than as a standalone core investment.
Sahifund Rating
★★★★☆ (4/5)
Recommendation
Invest if you:
- Have a long-term investment horizon of at least 5–7 years.
- Already own diversified equity mutual funds.
- Want exposure to actively managed momentum investing.
- Can tolerate high volatility.
Avoid if:
- You are a conservative investor.
- You seek stable returns.
- You are investing in your first equity mutual fund.
- You require low-risk wealth creation.