Active momentum funds are gaining popularity as major fund houses like Axis MF, Nippon MF, and Union AMC launch new schemes, despite the presence of over 20 passive options. Fund managers argue that the active approach, which involves continuous market analysis, is crucial for navigating inherent risks, especially during market downturns. Umeshkumar Mehta from Samco Mutual Fund highlights that momentum strategies have thrived in India's rising market over the past 15 years, emphasizing the need for flexibility in active management.
