@visuarchie , Vishwanath ji, I have few questions before I implement this strategy , Kindly help me understand:-
- You are having 5 different portfolios, Niffy 50, Nifty Next 50, Nifty Midcap 150, Smallcap 250 and Microcap 250. You select top 15 stocks with highest momentum ranking in Nifty, top 20 from midcap, top 20 from smallcap and top 25 from microcap.
But can we just select top 25 stocks out of nifty 750 universe, instead of having 5 different portfolio? Are you maintaining these because , you fear that if we select 25 out of 750, you might end up getting all microcap in top 25 and your overall portfolio will tilt towards microcap and smallcap? - In last 18 months, your confidence over this strategy has grown, rightly so, with stellar returns and you have increased the allocation towards momentum portfolio innyour overall equity, which you have mentioned earlier was lower single digit, may be around 5%. So now how much percentage it has reached , among your equity portion of portfolio? Also since the strategy is really good and from the book Quantitative Momentum, even the past data from 1927 supports this strategy, why not give substantial exposure to this strategy atleast around 50?
- I checked some stocks this week and I realised that 4-5 stocks out of 20 are not in stage 2 of momentum. They are in stage 3 consolidation. Currently I am following stage analysis of momentum, I become skeptical of entering into stage 3 stocks, so is it ok to apply this stage criteria and exclude such stocks? Or it would be improper to mix the two strategy?
- Do u also apply upper circuit or lower circuit criteria and exclude those stocks which frequently undergo circuits? U have mentioned earlier that u faced problems while selling Adani stocks during Hindenberg episode.
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