I have not read any prospectus, so I don’t know what funds in India are doing. I was thinking in terms of their size. And, it is possible that, if they have allowed themselves some leeway in writing, it allows them to modify their allocation to stocks, as they too will lose along with us in a market crash. Not to mention the fact that, not all the investors will stay for periods of non-performance, as that is not part of their plan, nor they can afford.
My non conducive statement is also in relation to this. If there is no liquidity, no exuberance, and if prices fall, the past high returns generated with momentum cannot be repeated. Of course, the performance will be relatively better, as the cash component increases. I have experienced this.
What I think of momentum, what you are doing, what @visuarchie is doing, are different. And, I am very much interested to learn about the ways to do this, and share my two cents.
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