@Guarndian_Nettings Each one to his own convenience.

One thing that I do not like about index funds (even if they momentum funds) is that they hold a large number of stocks (example 250 in the case of Microcap250 or Smallcap 250). They cannot be as efficient as holding just the top 25.

MFs rebalance only when the index is rejigged, that is typically about once in 6 months. We have an option of being more nimble and rebalance as necessary – weekly, fortnightly or monthly. This should eventually lead to better results.

@Keyur_Joshi Couple of things if we have to simplify momentum investing (not in any specific order).

1. We are identifying which stocks are in upward momentum in any universe and ranking them.
2. After that we have two choices only – if we find equity as a class is going down, we can shift the entire pf to cash or gold. If we want to remain invested, look at relative performance of the stocks in the universe and choose the strongest ones.
3. Price change is the only true reflection of momentum. Every other operation we do on the price change will only reduce the returns (but can reduce drawdowns as well).
4. Even parameters like Standard deviation or any other factor will depress returns only.
5. Momentum investing is rule based, non-discretionary investment.
6. Build ones own system with specific rules and stick to it.

Others:

1. Instead of using momentum ratio and Z scores, wanted to check if there could be any difference with Sharpe returns. The calculations below the yellow line are for that purpose. However, I continue to use momentum ratio and Z score only.
2. No, I have not used any backtesting library.

I am quoting from their Q1 concall. Would like to know, where did u get ur numbers from

Thanks