Smallcap momentum portfolio

@ChaitanyaC Long query from your side. Will break it up and answer as best as I can.

1. I find the returns to be extremely good in momentum investing. This could be because the market is moving upwards. When there is a downturn, I am certain momentum investing will get affected, but I don’t see this as a major concern in the near future. Doing it myself – I think system based, momentum type investing is best for a small DIY retail investor. We should leave fundamental investing to professionals who have lots of time to study the company and do some scuttlebutt investing.

2. Returns have been very good. I expect that it will continue to be good going forward. Will we hit a losing streak – I am sure we will. But, because I do weekly rebalances, I might come out without too much damage.

3. I feel that people like complicated stuff. Anything that is simple, rule based investing is hard to digest for many. If I had justified the selection of stocks with some fundamental jargons, I am sure people would have found more conviction in the list.

4. I started very small to be sure that I have got it right. Over the last 15 months or so, I have been adding money at regular intervals as I have become more and more confident in my methodology. Based on my successes, I have employed the same to multiple indices.