Momentum Fund

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Momentum Fund

A mutual fund that invests predominantly or exclusively in securities experiencing short term price increases. That is, a momentum fund buys stocks in companies that are on an uptrend and sells them when the trend reverses itself. This kind of mutual fund was relatively popular in the 1990s but has since fallen out of favor because of concerns over its sustainability. It is informally called a momo fund.
References in periodicals archive ?
Proof exhibits that investors don't take after a ponder system of specifically putting resources into momentum funds. Or maybe they appear to innocently pursue late champ funds, and, all the while, they unwillingly advantage the momentum impact temporarily.
Momentum funds are sometimes disparaged as simple "trend jockeys" by other money managers, and frequently misunderstood outside the industry.
Momentum funds are buying the strength, piling in as the price rises.
A programme called Momentum funds the provision of free education and training projects for those who are unemployed for 12 months or more.
Pretty quickly we came up with three different momentum funds and a diversified arbitrage fund.
The move higher has been limited to 1.3950, with momentum funds and real money names looking to sell rallies.
Earnings momentum funds are for investors who have an appetite for risk.
And it's not just the so-called momentum funds that are piling on with the herd that run up stock prices to unreasonable levels.