NJ Mutual Fund has launched the NJ Momentum Fund, an open-ended equity scheme. The New Fund Offer (NFO) runs from 10-July-2026 to 24-July-2026.
The scheme aims for investing predominantly in companies with strong price and earnings momentum.
The scheme aims for investing predominantly in companies with strong price and earnings momentum.
NJ Momentum Fund: NFO details
Particular | Details |
Fund Name | NJ Momentum Fund |
Fund Type | Open-ended Equity Scheme |
Category | Thematic Fund (Momentum Theme) |
Benchmark | NIFTY 500 TRI |
Fund Managers | Mr. Viral Shah, and |
NFO Open Date | 10-July-2026 |
NFO Close Date | 24-July-2026 |
Allotment/Reopening Date | 31-July-2026 |
Minimum Investment | ₹500 |
Additional Investment | ₹500 |
SIP | ₹100 |
NAV | ₹10 |
Stamp Duty | 0.005% |
Entry Load | Nil |
Exit Load | Nil |
Company details
Particular | Details |
AMC Name | NJ Asset Management Private Limited |
AUM | ₹6,939 Crores |
Website | |
Address | Unit No. 101A, 1st Floor, Hallmark Business Plaza, Bandra (East), Mumbai – 400051, Maharashtra |
Contact Number | 1860 500 2888 / 040-49763510 |
Source: AMFI India New Fund Offer | NJ Momentum Fund
What has NJ Mutual Fund launched?
NJ Mutual Fund has launched the NJ Momentum Fund, an open-ended thematic equity fund that invests mainly in companies displaying strong momentum characteristics.
The scheme seeks to invest in equity and equity-related securities selected through a quantitative, rule-based investment process.
How does the strategy work?
The fund follows a systematic investment approach instead of relying solely on fund manager judgement.
It identifies companies showing sustained positive price or earnings trends and regularly reviews the portfolio to reflect changing market conditions.
Steps | What happens? |
1 | Identify companies showing strong price or earnings momentum. |
2 | Apply rule-based quantitative filters. |
3 | Review quality, volatility and liquidity measures. |
4 | Build a diversified portfolio that mainly follows the momentum theme. |
5 | Regularly review and rebalance the portfolio based on model signals. |
Let’s see through an example
Suppose two companies operate in different sectors.
- Company A has consistently reported improving earnings while its share price has steadily moved higher over several months.
- Company B has shown weak earnings growth and its share price has remained largely flat.
A momentum strategy favors Company A due to its stronger momentum.
The portfolio is rebalanced if trends shift and another company shows stronger momentum.
Potential benefits
Potential benefit | Why does it matter? |
Rule-based investment process | Reduces emotional decision-making by following predefined investment rules. |
Focus on momentum | Aims to capture companies showing strong price and earnings trends. |
Active portfolio review | The portfolio is reviewed regularly and adjusted when model signals change. |
Equity exposure | Offers an opportunity to participate in long-term growth of listed companies. |
Quality filters | The strategy may use quality, liquidity and volatility measures alongside momentum. |
Diversified portfolio | The scheme can invest across sectors and market capitalisations based on opportunities. |
What are the key risks?
Risk | What does it mean? |
Market risk | Equity prices may fall because of changes in economic or market conditions. |
Momentum reversal | Stocks that were performing well may suddenly underperform when market trends change. |
Thematic concentration | The portfolio may be concentrated in sectors where momentum is strongest, increasing volatility. |
Model risk | The rule-based strategy may not always outperform the benchmark or broader market. |
Equity volatility | Short-term fluctuations in share prices can affect the fund’s NAV. |
Liquidity risk | Some investments may be difficult to buy or sell quickly during volatile market conditions. |
Who may consider this fund?
Investor Type | Why? |
Long-term equity investors | The scheme aims for long-term capital appreciation. |
Investors comfortable with very high risk | The scheme carries a very high risk according to the Scheme Riskometer. |
Investors seeking thematic exposure | It provides exposure to the momentum investment style. |
Investors looking for a rule-based strategy | Portfolio decisions are primarily driven by a quantitative investment model. |
Investors with an investment horizon of at least five years | The SID indicates the strategy is designed for long-term investors. |
Who may not find it suitable?
Investor Type | Why? |
Conservative investors | The scheme invests predominantly in equities and carries very high risk. |
Investors seeking guaranteed returns | Mutual funds do not provide assured returns. |
Short-term investors | Equity market volatility may affect short-term returns. |
Investors uncomfortable with market fluctuations | Momentum strategies can experience sharp swings during market reversals. |
Investors seeking regular fixed income | The primary objective is capital appreciation rather than predictable income. |
NJ Momentum Fund vs traditional investment options
Investment Option | Return Potential | Risk | Complexity |
Fixed Deposit | Low | Low | Low |
Debt Mutual Fund | Low to Moderate | Low to Moderate | Low |
Hybrid Mutual Fund | Moderate | Moderate | Moderate |
Equity Mutual Fund | High | High | Moderate |
NJ Momentum Fund | High (not guaranteed) | Very High | High |
Zenith Finserve’s Review
The actively managed NJ Momentum Fund uses a rule-based model to identify stocks with strong price and earnings momentum. The strategy can perform exceedingly well during uptrends. However, it can severely underperform during downtrends as well.
How can Zenith Finserve help?
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans, and tax situation before suggesting investments.
We align our investment suggestions to match your needs. Then, we review them periodically to keep them aligned with your changing life and financial position.
Frequently Asked Questions
1. What is the NJ Momentum Fund?
It is an open-ended thematic equity mutual fund that follows the momentum investment theme by investing predominantly in companies showing strong momentum characteristics.
2. When is the NFO open for subscription?
The NFO opens on 10-July-2026 and closes on 24-July-2026.
3. What is the minimum investment amount?
The minimum investment during the NFO and on an ongoing basis is ₹500, while the minimum SIP amount is ₹100 per month with at least six instalments.
4. Who manages the fund?
The scheme is managed by Viral Shah and Dhaval Patel.
5. What benchmark does the scheme use?
The fund’s benchmark is the NIFTY 500 Total Return Index (TRI).
6. Does the fund have an exit load?
No. The Scheme Information Document states that the scheme currently has no exit load.
7. What are the main risks?
The scheme is exposed to equity market risk, momentum reversal risk, thematic concentration risk and model risk. It is categorised as a Very High Risk scheme under the Scheme Riskometer.
8. Is the fund suitable for short-term investing?
The SID states that the scheme is designed for long-term capital appreciation and is intended for investors with an investment horizon of at least five years.
