Investment • 743 • 10
Momentum investment follows an opposite approach from the prevailing buy-low and sell-high canon. This is majorly based on the concept of investing in those stocks that are already doing well and are expected to perform well even in the near future. So, momentum investing is all about investing in high-performing stocks until it slows down eventually.
Momentum investing has been very profitable in recent years and generated much higher returns than broader indices. The outperformance of the momentum funds has been witnessed to be very significant.
You must remember that momentum funds are high-performing and yield higher profits, but they are still unproven and new. If you are a conservative saver, you should ideally give this particular category a miss and restrict your investments only to large-cap Flexi-cap and index funds. If you have an appetite for handling volatility, you can try the momentum funds.
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