Well, to be honest these two are not new at all !
The strategies have been running since 2016 as LIVE products at weekendinvesting.com . Over the years as we developed more and more products on weekendinvesting.smallcase.com the convenience of managing the portfolio at smallcase became very evident and hence a lot of demand from existing users to have the Mi30 and HNI Wealth Builder ALSO on the smallcase platform.
On the National Stock Exchange there are about 1700+ stocks listed on date and the top 500 market cap stocks constitute the CNX500 Index. Mi30 is a strategy built on the stocks constituting the universe of CNX500 stocks.
The top 100 stocks that have a market cap of 26,000 to 13,00,000 crores categorized as large caps, the next 150 have a market cap of 8,000 to 26,000 crores classified as mid caps and the rest are all small-caps. For purposes of filtering out smallcap companies the HNI Wealth Builder strategy ( or any strategy within the umbrella of weekendinvesting) does not look at companies with market caps below 1000 crores . This leaves us with a universe of nearly 525 companies which we use to construct the HNI Wealth Builder.
The core engine in the two vehicles and for all other momentum products of Weekendinvesting remains the same. The engine tuning is different however…Some variants are tuned to give you better torque at the start of the rally and others will catch the trend late. Some will exit early and have more churn others will exit late and have lesser churn.
Both these strategies are meant for larger sized portfolios and will make sense for accounts in the 10-50Lacs range
The performance to date in the last five years has been quite satisfying and as per expectation. Mi30 has clocked a CAGR 21.8% and HNI Wealth Builder at 26.2%. The churn in both strategies depending on the year has remained in the 1.5x to 2.5x range per year. The max drawdown at end of any quarter in last 5 years for Mi30 has been at 18.2% and HNI Wealth Builder at 20.2%. These two strategies can complement each other as well as they address somewhat different segments in the markets with there being a 9 stock overlap currently.
The quarterly data for the last 5 years (updated to Feb 2021) is presented below. You will be surprised to see that in the most severe market drawdown quarter of Jan to Mar 2020, Mi30 dipped just 11.6% and HNI Wealth Builder at -4.8% vs 29% on CNX500 and 38% on smallcap index. This is possible only because of tactical allocation and ability of these strategies to move to cash when needed.
|HNI Wealth Builder||25.97||11.14||-3.05||13.5||7.9||2.28||22.62||-9.58||-3.06||-7.01||-2.2||2.06||1.96||-5.80||7.33||-4.86||7.3||26.24||24.45||14.61|
Performance on an annual basis
|HNI Wealth Builder||40.34||19.86||-4.6||-8.15||88.9||26.24%|
In the past there have been many multi-baggers in either strategy and in the current the following stocks are leading the charge to give you a brief preview
HNI Wealth Builder winners currently with >100% gains
The advantage of having a structured strategy are aplenty. Any strategy should answers these 4 KEY questions below at all times and investing can henceforth becomes less taxing and more enjoyable. Hundreds of users have been enjoying these strategies since many years now.
What to BUY ?
When to BUY ?
How MUCH to BUY ?
When to SELL ?
The LIVE versions will continue as they were as many prefer to do it that way or for those whose brokers are not yet on smallcase. These new versions will appeal to those who wish to execute with less effort through the smallcase platform.
The pricing of the strategies on smallcase inclusive of GST will be:
|HNI Wealth Builder||33040||11210|
Any questions can be sent to email@example.com . We are always ready to respond ASAP. The subscriptions are non refundable and these model portfolios are not to be seen as advice.