After trying my hands with Low Risk – Smart Beta, I decided to get serious with smallcase. I chose Weekend Investing’s Mi_NNF10 Momentum smallcase. There were three primary reasons for selecting it.
- This smallcase invests in 10 of the Nifty Next 50 companies. These are the companies which I recognise so I was comfortable investing in them.
- Stopping my rebalances will mean, at worst, I will be stuck with Nifty Next 50 companies; which shouldn’t be that bad.
- This smallcase rebalances every month. There were other smallcases which were rebalanced every week and it was too much for me. Monthly rebalance was something that I could handle. I would have preferred a quarterly rebalance but I guess that’s how momentum strategy works.
Return
I have considered below components in my Amount Invested.
- Subscription fee for smallcase
- Being fee for smallcase
- Amount paid while rebalancing
- DP charges that I incur while selling shares due to rebalancing
- Dividends (deducted from Amount Invested)
- Amount received while rebalancing (deducted from Amount Invested)
For the first six months I did not see any profit. After that the profits have improved and even during the current market correction the smallcase seems to be holding on.
Profit
I have renewed my yearly subscription to this smallcase. Let’s see how it performs in its second year for me.