I am certain that there is never a bad time to start.
As you rightly observed, BSE is riding well and has a current allocation of 9.9%, while one of the new entrants has 3.58%.
2 Likes
If you look at the momentum ratio ranking for 6m and 12m, you will notice that the list is quite different.
Maybe the Z score is damping them when we consolidate both lists.
Not sure if there is any other way to combine two periods.
Hi would you mind sharing whats your annualized return since when you started and since when you’re invested in this strategy? Somewhere you’ve mentioned 40% return, but that seems low(er) than index.
Invested since 28th November 2022, ie 13 months. My XIRR for this period is 91.49%. This number will come down slightly when I take into account the exchange and demat costs (no brokerage).
4 Likes
Awesome! You’ve nailed this strategy!!
XIRR - you mean are you doing an SIP?
I have been adding money at regular intervals and hence I quoted XIRR.
2 Likes
Update for entry on 1st Jan 2024
Based on ranking
- BSE
- BSOFT
- SUZLON
- NLCINDIA
- KAYNES
- KALYANKJIL
- JYOTHYLAB
- ITI
- WELCORP
- APARINDS
- HINDCOPPER
- ANGELONE
- MCX
- CHALET
- JINDALSAW
- COCHINSHIP
- ZENSARTECH
- HUDCO
- SHYAMMETL
- CYIENT
Based on A–>Z for easy tracking
- ANGELONE
- APARINDS
- BSE
- BSOFT
- CHALET
- COCHINSHIP*
- CYIENT*
- HINDCOPPER*
- HUDCO*
- ITI
- JINDALSAW
- JYOTHYLAB
- KALYANKJIL
- KAYNES
- MCX
- NLCINDIA
- SHYAMMETL*
- SUZLON
- WELCORP
- ZENSARTECH*
Entry:
COCHINSHIP and HINDCOPPER make an entry.
CYIENT, HUDCO, SHYAMMETL and ZENSARTECH cannot enter as there is no vacancy.
Exit:
MRPL and NAM-INDIA exit.
IRCON, MEDANTA, SJVN and SONATSOFTW stay within the top 25 and hence remain.
5 Likes
I love the PF, however weekly rebalance will result into massive Short term Capital gain tax
how much in terms of % of gain ?
% gain over what period?
Your tax is on your gains, ie losing some gains as tax - so why do you worry?
To reduce the churn, I am not exiting all scrips that are out of my top 20. I am giving them some leeway. For example, this week instead of 6 exits, I am doing two only.
1 Like
Update for entry on 8th Jan 2024
Based on ranking
- BSE
- BSOFT
- SUZLON
- ANGELONE
- JYOTHYLAB
- ITI
- KALYANKJIL
- KAYNES
- WELCORP
- NLCINDIA
- HINDCOPPER
- SHYAMMETL
- IRCON
- MCX
- COCHINSHIP
- NAM-INDIA
- APARINDS
- JINDALSAW
- BRIGADE
- HUDCO
Based on A → Z for easy tracking
- ANGELONE
- APARINDS
- BRIGADE*
- BSE
- BSOFT
- COCHINSHIP
- HINDCOPPER
- HUDCO*
- IRCON
- ITI
- JINDALSAW
- JYOTHYLAB
- KALYANKJIL
- KAYNES
- MCX
- NAM-INDIA*
- NLCINDIA
- SHYAMMETL*
- SUZLON
- WELCORP
Entry:
NAM-INDIA and SHYAMMETL make an entry.
BRIGADE and HUDCO cannot enter as there is no vacancy.
Exit:
SJVN and SONATSOFTW exit.
CHALET and MEDANTA stay within the top 25 and hence remain.
1 Like
Apar is not going anywhere since September, I know it’s a great company, but not sure why is still a part of the momentum portfolio.
You are absolutely correct!
My look back periods are 1 year and 6 months. If you see the ranking over these periods, it is 11/250 over one year and 27/250 over 6 months. This shows a deterioration in the shorter time frame.
I did a test now to reduce the look back period to 3 months (instead of 6). Apar Inds came out at 150/250. This validates your point completely.
However, my strategy continues to throw up Apar. I don’t do any discretionary entry / exit. I follow the strategy fully.
2 Likes
Thanks for explaining. Most momentum small cases prefer Monthly timeframe, instead of a longer one.
Also given your PF is smallcap only, I believe volatility is higher, and affect of things like earnings, industry headwinds would be higher. How about taking a smaller timeframe?
Won’t recommend weekly since again volatility is there in smallcap, just simple selling by a fundhouse or retail can tank the price in short term.
2 Likes
Hello. In all the literature that I have read, momentum portfolios are built around 1 year look back period. People have done a lot of research to confirm that not much changes for lower time periods. The variations include 12m look back or 12m - 1m look back etc. I have used 6m also to provide some recency bias.
What changes is the rebalance frequency. For large caps rebalance may be done over a one month frequency while for smaller caps, it might be better to do it more frequently.
I do my rebalance every week to negate effects of big volatility. I am invested in several smallcases operated by other Managers. They also follow similar practices.
I see. I have also recently started Gulaq smallcase for momentum. What smallcases are you invested in, anything you can recommend? Looking for Quant or Momentum only.
1 Like
I learnt about and benefitted from Momentum investing by Weekend Investing (Alok Jain). I am invested in Mi20 and NNF10.
Mi20 - invested since Aug 2021; XIRR - 43.6%. Performance has been very good and steady.
NNF10 - invested since Dec 2021; XIRR - 19.5%. This portfolio suffered a lot during the Adani episode where I could not exit. Otherwise, the results would have been even better.
One of my family members is invested in Wright Momentum and results have been very good.
6 Likes
Update for entry on 15th Jan 2024
Based on ranking
- BSE
- SUZLON
- BSOFT
- ANGELONE
- KALYANKJIL
- JYOTHYLAB
- KAYNES
- CHALET
- IRCON
- SHYAMMETL
- ITI
- SOBHA
- BRIGADE
- NAM-INDIA
- NLCINDIA
- JINDALSAW
- COCHINSHIP
- SWANENERGY
- MRPL
- CESC
Based on A → Z for easy tracking
- ANGELONE
- BRIGADE*
- BSE
- BSOFT
- CESC*
- CHALET
- COCHINSHIP
- IRCON
- ITI
- JINDALSAW
- JYOTHYLAB
- KALYANKJIL
- KAYNES
- MRPL*
- NAM-INDIA
- NLCINDIA
- SHYAMMETL
- SOBHA*
- SUZLON
- SWANENERGY*
Entry:
BRIGADE, SOBHA and SWANENERGY make an entry.
CESC and MRPL cannot enter as there is no vacancy.
Exit:
APARINDS, HINDCOPPER and MCX exit.
MEDANTA and WELCORP stay within the top 25 and hence remain.
5 Likes
@Ascendant Not sure you noticed. APAR is out this week. May there is a slight lag because of my look back period of 6m and 1y. But it is working.