Mi25 is a LIVE momentum strategy at weekendinvesting.com since 2016.
It focuses only on small-cap stocks. Small cap stocks are typically all the ones which are below the Large and Mid cap universe ( top 250 stocks as defined by SEBI)
On the National Stock Exchange there are about 1700+ stocks listed on date and if you take off the top 250, then nearly 1450 stocks will get categorized as small cap stocks
The top 100 stocks today 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 small-caps.
For purposes of filtering out smaller companies the Mi25 strategy ( or any strategy within the umbrella of weekendinvesting) does not look at market caps below 1000 crores . This leaves us with a universe of nearly 379 companies which we use to construct the Mi25.
Mi25 is a diversified strategy of up to 25 stocks that are filtered based on minimum average volume conditions and our proprietary entry and exit rules based on momentum. The stocks selected are given an allocation of 4% of capital at the time of entry. The basic theme remains the same as with all our strategies of riding winners, losing losers early and sitting in cash when there is no opportunity. The advantage vs other conventional strategies is that we have crystal clear and non-emotional entry and exit rules and we execute the same with discipline.
Mi25 started 2016 amidst a good market after the Nov 2015 demonetization and was able to garner returns of 71.27% in the FY 2016-17. The small cap party did not stop here and FY1718 was another bumper year. However, in FY1718 we hit a high in Jan 2018 above 100% and by March end the annual performance reduced to +63.06% which still was quite good for the year. In the next two years the strategy generated -11.68% and -8.00% despite the small cap bear market and the Covid crash of Mar 2020. In FY 2021 so far the strategy is up by 31.98%. Overall since inception Mi25 has a gross return of 199.5% (100 rs invested is now 299.5 not including fees or taxes) or in other words a gross CAGR of 28.8%. The max drawdown calculation from the Q4 2018 peak to the Q2 2019 lows was around 29.5%
Essentially over this 4 year and 4 month period , the small cap index gained gross 7.7% while this strategy gained 199.5% by tactical allocation and sticking to its core philosophy.
The strategy so far had been running as a LIVE weekendinvesting product where the re-balance updates are sent during live markets at 315 PM every Friday. On demand from users to build a cheaper product which has the ease of mirroring the portfolio with one click the Mi25 Smallcase will allow portfolio size of 5 to 15 Lacs to run efficiently. The LIVE strategy will continue to run like it is.
Some existing LIVE users may wish to use the one click convenience of the re-balance. If they so like they can add this smallcase at a 50% off price just for the month of Aug 2020 by using a promo code of GET50 on the annual plan. This is only for existing users registering through their existing Mi25 registered email addresses.
The new plans for Mi25 Smallcase are:
Annual plan : INR 14999
Quarter plan : INR 4999
The customer support at weekendinvesting and smallcase.com are well known. Many testimonials of the service can be seen here. One such testimonial is reproduced below
Many hundreds of users have been using this service for last many years and a less than 2 % drop out rate is testimony to the confidence I enjoy of my patrons.
Please let me know if you have any queries about this new smallcase. I am always available at firstname.lastname@example.org
Dear Alok, I am very interested in subscribing to Mi25 on the smallcase platform. I have the following queries: 1) Would the smallcase stocks be exactly the same as the live product on your live platform ? Would the returns be the same same ? If not, what is the difference ?2) Why the difference in subscription fee on the live and smallcase platform?3) Can I have a list of the stocks in the Mi25 smallcase ? Just want to see what I’m getting into.
1. Yes, Yes
2. Meant for smaller pf. Execution is delayed and mkt orders in Smallcases
3. Sure Please send me mail
If i buy MI25, do i have to act according to your email to buy or sell shares as instructed, or do you have options to buy mi25 and sit, the system does automatically adjustments?
A click operation of rebalance of portfolio is needed every monday whenever there is a change
Dear Sir, Polite reminder for below email.
Is it not possible to release Re-balance update on smallcase platform at the same time u release it for LIVE version on Friday ?
Do you specify Limit Price to buy stock in LIVE version?
No not possible as process of smallcase is not real time.
LIVE version last hr wtd avg price.
Also how do i track value of my smallcase index on daily basis ? When I invest it starts at 100 so if I want to see day wise index value of lets say past 1 week or 1 month how do I see that ? High Low & CLosing index value – So that I can know the max draw down also.
Please send a mail to email@example.com and they will explain the details. All data is available on the smallcase site.
Can you help me understand turnover ratio of a Mi-25 portfolio in a year. Need an evaluation for net returns
Average churn 3-3.5X