How do active momentum funds work, and are they worth buying?
Some funds blend price momentum with a fundamental or quality overlay. Motilal Oswal applies its momentum model on top of stocks already under its research coverage, vetted through the firm’s quality, growth, longevity and price (QGLP) framework. “We apply our proprietary momentum model, which generates investment ideas and suggested allocations. The quality filter remains intact because every stock is already under active coverage,” said Ajay Khandelwal, head of equity at Motilal Oswal AMC. “If a stock has shown no meaningful price movement over the last three to six months, it generally will not feature in this scheme,” he added.
