Momentum investing stages sharp comeback after 15-month lull

Momentum investing is staging a strong comeback on Indian bourses, with the Nifty 500 Momentum 50 index surging 17.29 percent in the three months to 30 June 2025, outperforming Quality (16.07 percent), Value (7.89 percent) and Low Volatility (5.52 percent) factor indices. The style had declined 7.5 percent in 2025 amid tariff and geopolitical volatility, but fund managers cite its historical three and five year outperformance of around 20 percent CAGR and view the rebound as sustainable as long as volatility rises gradually rather than in sharp jumps.