<h1>Momentum Mutual Funds: Rule-Based Stock Selection and Rebalancing Offer Adaptive Allocation but Bring Volatility, Costs, Tax Tradeoffs</h1> A financial-services press release describes momentum mutual funds that select and rebalance into stocks with strong recent returns to align portfolios with market cycles. It explains the funds' rule-based selection, periodic rebalancing, and potential to rotate among sectors as leadership shifts. The statement highlights benefits-trend following, adaptive allocation, discipline, and diversification-alongside legal and practical risks including volatility, transaction costs, tax inefficiency, and reliance on historical data. It advises investors to review fund rules, turnover, expense ratios, and historical cycle performance and to consider blending momentum funds with other strategies for risk management.