Momentum is a good strategy. It is a powerful exception to the efficient market theory. Momentum strategy has given better than average returns in almost all studies. Real problem is churn, short term capital gain taxes and transaction cost.
Why don’t invest in Momentum mutual fund, following the same strategy as You save on short term capital gain taxes due to pass through provision of mutual funds. Further their transaction cost is much lower. It also saves you from continuously watching market prices. Around 6 months back I invested a small amount in Quant momentum fund. They have been able to generate more than 55 percent, against 25 percent TR of market. I am following. Even when the market falls, they are able to generate better returns than market. Let us see how it goes.
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