Overview !
Q1 FY25 was an existing quarter where the Election 2024 was the centre stage… The entire months of Apr and May were subdued surprisingly ahead of the Election results and after the market was satisfied that the reduced mandate was good enough to run the government for the next 5 years the rally resumed post the results somewhat to end the quarter right at the big number of 24000.
The period Q1 FY25 also coincided with previous 4 quarters being in green and net net since Jan 2023 in 18 months markets have traversed a distance of nearly 7000 points on a base of 17000 which is close to 40%. This kind of a large cap move is not a regular affair and the last time we had such a move in 2021-22 it was followed by a lull of a year. This time around the expectations are very high and the Budget of the new government and the quarterly numbers will drive the sentiments here forward.
India remains the fastest growing large economy in the world and the markets are front running that reality ahead of times. The major global events on the horizon remain the interest rate changes in the US, the US presidential elections, and any geopolitical moves in Russia or Taiwan.
Nifty gained over 7.5 % this quarter and the surprise was the big move in the Nifty next 50 stocks at 18% ! Small Cap 250 and Midcap400 index also did well at 19.4% and 18% respectively.
For Q1FY25 within Weekendinvesting strategies notably, Mi20 gained 27.6%, HNI CC at 25.9% and Mi35 and Mi NNF 10 at 23.6% each
Our belief in the concept of BBC (Bhav Bhagwan Che), a Gujarati saying which means that “Price is God” helps us follow the markets in a non-discretionary manner and we allow the markets to do the talking. This has been our sole mantra in the last 8+ years that we have been offering these services to tens of thousands of Weekendinvestors. Our 100% non-discretionary approach at times can lag the markets when markets make trend changes but over time, we have seen this perform much better than many other styles of investing. The historical CAGR returns experienced by clients and the resulting thousands of testimonials are proof to this claim.
The forecast for next few quarters as it stands today is that of continued optimism given the political and economic strong position and the potential of the culmination of hiking interest rates.
At Weekendinvesting, we will continue to walk our established chosen path of following our strategies to the Tee. All our strategies have a self-healing and self-correcting approach and will come around strongly after any drawdown period that we may face. The whole setup is like a high probability winning machine provided you give the strategies adequate time to heal if the market undergoes some damage.
This last quarter we have taken many new initiatives at Weekendinvesting.
– We had the first HNI Online Weekendinvesting Hangout which was well received.
– We are now building a web tool that will allow users to evaluate their own portfolios.
– The online appointment system that was added in the App is being used extensively where you can have a one on one google meet based video call with our team to discuss anything.
– Our new daily newsletter has been upgraded and it goes out to more than 30000 audience and we have a good engagement with our audience there.
– We have in this quarter started content delivery through YouTube and other channels also to meet our target to educate youngsters on the importance of saving, investing and having a planned approach.
– Many new things are planned for the next quarter and we will unveil them in times to come.
We strongly believe in the long-term India story and we believe that momentum strategies will continue to do very well in this India scenario of continuity of growth and liquidity flows. All we need to do is to ensure that we are riding the winners when it is favorable to us and defending our position when it isn’t. The key to success here is discipline and sticking to the proven strategy.
Q4 FY 2024 Video Review !
Mi India Top 10 Review
Mi India Top 10 is a Low Churn – Monthly Rebalanced – Rotational Momentum strategy that invests in Top 10 trending stocks from the robust Nifty 50 Universe. Nifty 50 is India’s premier benchmark index for stocks that are ranked as Market Cap of 01st to 50th on the NSE and is rebalanced twice a year. This strategy does not go to cash like other strategies in a downturn but attempts to extract some more beta from this group by staying with the strength within this group. The strategy allocates 10% weight at the beginning of each month to its ten constituents and rebalances it each month.
Mi India Top 10 performed in line with Nifty 50 in Q1 FY 2025 clocking 8.5% compared to 7.54% on it’s benchmark. Despite similar outcomes, the strategy has taken a superb lead versus Nifty 50 especially since Nov 2023 with the overall performance since launch currently at a healthy 63% compared to 38% on it’s benchmark.
In almost 2 years of live run, the strategy’s CAGR is currently at a very healthy 29.5% compared to 18.5% on the Nifty 50
Mi India Top 10 Intro Video | Mi India Top 10 Blog Post
Mi NNF 10 Review
Mi NNF10 is a rotational momentum strategy based on the Nifty Next 50 large cap index. It is a great substitute for capital that seeks investing in the indices. Nifty Next 50 is an index for stocks that are ranked as Market Cap of 51st to 100th on the NSE and is rebalanced twice a year. These large cap stocks have a higher volatility than the Nifty stocks. This strategy does not go to cash like other strategies in a downturn but this strategy is able to extract some more beta from this group by staying with the strength within this group. The strategy allocates 10% weight at the beginning of each month to its ten constituents and rebalances it each month.
Mi NNF 10 continues to perform incredibly well having clocked 23.5% gains in Q1 FY 2025 compared to 17.9%on the Nifty Jnr Index. The strategy has been extremely consistent in outperforming it’s benchmark across all major timeframes.
The strategy has completed ~3.5 years and has recorded a superior 38% CAGR compared to 28% on the Nifty Jnr Index.
Right since mid 2021, the strategy has maintained and steadily increased it’s lead over Nifty Jnr. Despite the slump in early 2023, Mi NNF 10 has made an exceptional comeback with absolute returns at a handsome 225% compared to 146% on it’s benchmark.
Mi Evergreen Review
Mi Evergreen is a dynamic strategy which aims to outperform the underlying benchmark CNX200. This index comprises 200 large and mid-cap names which are the top-quality stocks in the markets. This product is suitable for use in all stages of the market cycles as it is designed to invest in the strongest stocks in the pack at any point. Additionally, there is a permanent hedge of Gold available here.
Mi EverGreen had a fantastic Q1 FY 2025 recording gains of 19.5% compared to 10.1% on CNX 200 index. Clocking ~2x beat on benchmark signals the strength of momentum investing and its ability to extract alpha from the underlying index.
In the ~2.5 years of live run, Mi EverGreen has a fantastic CAGR of 37% compared to 17% on the CNX 200 index (~2x beat) at almost the same drawdown.
This strategy has also managed to establish a healthy lead against its benchmark clocking an absolute gain of 120% compared to only 49% on CNX 200. Mi EverGreen’s fixed 25% allocation to GOLD also comes in quite handy in controlling the overall volatility of the portfolio.
Mi EverGreen Intro Video | Mi EverGreen Blog Post
HNI Capital Compounder Review
HNI Capital Compounder is a CNX 200 based rotational momentum strategy that invests across the 20 strongest stocks from its universe. This is the second strategy to join our HNI Segment that was created back in Nov 2023. The primary objective of the strategy is to try and extract some alpha from the robust CNX 200 universe which is a very potent blend of established large-cap leaders and emerging mid-cap champions.
HNI Capital Compounder has turned out to be one of the top performers of Q1 FY 2025 in the WeekendInvesting bouquet having recorded a superb 25% gains compared to 10% on CNX 200 index.
Th strategy has been live on Smallcase since Sep 2021 and has recorded a healthy CAGR of 35% compared to 15% on the benchmark.
HNI Capital Compounder commenced it’s journey at a time when markets did not possess enough momentum but still maintained a decent lead over it’s benchmark since start and started to widen it’s gap further from Apr 2023 onward. The absolute returns of the strategy is at a superb 131% compared to 45% on CNX 200 index.
HNI Capital Compounder Intro Video | HNI Capital Compounder | Blog Post
NG 5050 Performance
This portfolio invests in Nifty and Gold ETF in equal proportion and balances the weights every month. It is designed as a FREE alternative to market instruments that despite having higher risk are unable to deliver appropriate returns.
The strategy highlights the high inverse correlation between Nifty and Gold and how combining the two can result in a very low volatility outcome with superior returns than most low risk strategies. The strategy allocates equally to the two asset classes and rebalances it at the end of each month.
Index matching performance for a free Nifty & Gold ETF product is fantastic. In Q1, NG 5050 delivered a solid 7.78% performance in line with Nifty 50 at 7.54%. The best part of the strategy is not only it’s superb 15% CAGR but also it’s ability to keep volatility in check.
The aim of the strategy remains to offer a stable low risk option beating inflation and the strategy continues to deliver quite well on those terms.
This free strategy has quietly gone about its job of aiming to provide inflation beating returns at lower risk. A significantly lower Max Drawdown and a smoother equity curve is an example of the same.
Mi 20 Performance
Mi 20 is a portfolio of up to 20 stocks that aims to create sizeable alpha with trending stocks from the Mid-Small Cap 400 Index using the principles of Rotational Momentum. The strategy is rebalanced weekly and allocates 5% to each new entrant. The strategy is only available in the smallcase format.
Mi 20 has been on a roll for a long time now. The strategy continued on it’s fantastic run in Q1 FY 2025 as well with 27% gains compared to 18% gains on the mid-small 400 index. The benchmark in itself is a high performance lot outperforming other benchmarks over longer time frames and to be able to consistently beat the benchmark too is a very welcoming sign for a good strategy.
Mi 20 will celebrate 3 years of live run on 15 Jul 2024 and to have a CAGR of 48% in 3 years is extremely good especially when the benchmark’s CAGR is at 25.7%.
Mi 20’s story has also been very similar to some of the other strategies as it took off around the beginning of FY 2024 and never turned back post that clocking net absolute gains of 220% compared to 96% on the benchmark.
The strategy’s CAGR is currently at an exceptional 40% compared to 21% on the mid-small 400 index.
HNI Wealth Builder Performance
HNI Wealth Builder is an up-to 50 stock weekly rebalanced portfolio that follows momentum trends among small cap and mid cap stocks only. These stocks are filtered for average min volume and market capitalization above 1000 crores only. The stocks that are picked are allocated an exposure of 2% per stock in the portfolio. This is one of our very popular portfolios and it has consistently outperformed the benchmark index by a wide margin despite the large diversification.
HNI Wealth Builder had a decent Q1 FY 2025 performing in line with it’s benchmark, the Mid-Small 400 index. Overall, the strategy has been performing quite well since with a CAGR of 37% compared tp 31% on it’s benchmark. This was the first strategy to be inducted into the HNI segment and has found great reception among HNI investors as well.
HNI Wealth Builder’s ability to rotate in and out of cash has helped the strategy navigate through difficult times with a lot of composure. Since Feb 2021, the absolute returns of the strategy stands at 192% compared to 145% on Mid-Small 400 index
Mi 25 Performance
Mi 25 is an up-to 25 stock weekly rebalanced portfolio that follows momentum trends among small cap stocks only. These stocks are filtered for average min volume and market capitalization above 1000 crores only. The stocks that are picked are allocated an exposure of 4% per stock in the portfolio. This is one of our very popular portfolios and it has consistently outperformed the smallcap index by a wide margin.
Mi 25’s underperformed the benchmark, Smallcap 250 in Q1 FY 2025 with gains at 11.5% compared to 19.4% on the Smallcap 250 index. Though there has been a lag in performance, the strategy remains quite robust as a long term performer with it’s exceptional risk mitigation principles during weaker market regimes. A CAGR of 37.49% for a Smallcap based strategy is decent too despite not being in line with the benchmark.
The core aspect of this strategy is its dynamic cash allocation system which shifts money into cash when the markets enter a bearish phase.
Mi 35 Performance
Mi 35 is a dynamic strategy which aims to outperform the underlying benchmark Smallcap250 index. These are the 251st -500th stocks in the market place. This product is suitable for use in all stages of the market cycles as it is designed to remain invested in the strongest 35 stocks in the pack regardless of market conditions.
Mi 35 performed really well in Q1 FY 2025 clocking 23.59% gains compared to 19.4% on Smallcap 250 index. The best part of Mi 35 has been it’s consistent beat over it’s benchmark across a long period of time which visible in the below enclosed line chart.
Since going live on 15 Jul 2021, the strategy has recorded absolute gains of 175% compared to 91% on Smallcap 250 index.
The strategy has always been very nimble in rotating between the strongest stocks in its universe. It’s lead has widened considerably since the start of FY 24.
Mi 35’s CAGR currently stands at a very strong 40% compared to only 24% on the Smallcap 250 index
Mi 30 Performance
Mi 30 is an up-to 33 stock weekly rebalanced portfolio that follows momentum trends among constituents of the CNX500 index. The CNX500 index comprises the largest 500 stocks in the NSE universe. These stocks are filtered for average min volume and market capitalization above 1000 crores only. The stocks that are picked are allocated an exposure of 3% per stock in the portfolio. This is one of our very popular all cap portfolios and it has consistently outperformed the underlying index by a wide margin.
Mi 30 is a slow moving – conservative – multicap vehicle for those who are seeking such characteristics in a portfolio. The strategy has performed in line with the CNX 500 index at 10.57% compared to 11.3% on the latter.
Mi 30 has a very healthy CAGR of 23.3% compared to 20.1% on the CNX 200 index which is a relatively decent outperformance for a slow moving conservative strategy.
Mi MT Allcap Performance
Mi MT Allcap is a 20 stock weekly rebalanced portfolio that follows momentum trends among all listed NSE stocks. These stocks are filtered for average min volume and market capitalization above 1000 crores only. The stocks that are picked are allocated an exposure of 5% per stock in the portfolio. This is one of our longest running portfolios and has also consistently outperformed the benchmark index by a decent margin.
Mi MT Allcap had a reasonably good Q1 FY 2025 performing in line with the benchmark. The strategy recorded 12.6% gains compared to 11.3% on the CNX 500.
After a superb relative outperformance during the COVID crash, Mi MT Allcap took off and widened the gap to the benchmark in a very sizeable manner to record absolute gains of 453% since launch back in Nov 2018. The best part is the significantly lower max drawdown of 24% compared to 38% on the CNX 500 index.
The strategy’s CAGR stands at a very respectable 35% compared to only 18% on the CNX 500 index.
Mi MT Allcap Intro Video | Mi MT Allcap Blog Post
Mi ST ATH Performance
Mi ST ATH is an up to 10 stock portfolio that follows the short term momentum trends among all listed NSE stocks above market capitalization of INR 1000 cr and chases stocks hitting All Time Highs or multi year highs. The strategy is nimble footed and can have a higher churn.
Mi ST ATH performed in line with the CNX 500 index in Q1 FY 2025 clocking 12.9% compared to 11.38% on the latter. The strategy did really well till late 2021 after which there was a correction for a couple years. The strategy picked up quite well post Apr 2023 and has continued it’s good run since then.
The CAGR of Mi ST ATH is currently at 32% compared to 17% on the CNX 500 index
Mi ST ATH Intro Video | Mi ST ATH Blog Post
Mi ATH 2 Performance
Mi ATH 2 is a high risk , up to 10 stocks strategy that aims to create sizeable alpha by chasing stocks near their all time or multi year highs from the all listed NSE stocks above Market Cap of 500 crore. The strategy is nimble footed as it seeks to minimize losses by quickly exiting stocks that fail to trend up.
Mi ATH 2 performed quite well in Q1 FY 2025 clocking 16.5% gains compared to 11.2% on the CNX 500 index. The strategy has amassed an absolute gain of 57% since launch back in Jul 2023 compared to 64% on the CNX 500 index.
After going through a difficult phase back in 2021 & 2022, the strategy put on a strong show to come back and close the gap with the CNX 500 index.
The CAGR of Mi ATH 2 stands at 16.5% compared to 18% on the CNX 500 index.
This is a high risk strategy capable of extracting alpha especially during strong momentum markets. While the performance since start may not be as well as one may have expected it to be, we strongly believe investors should continue to remain patient and take a long term outlook.
Mi ATH 2 Intro Video | Mi ATH 2 Blog Post
That’s a wrap on Q4 FY 2024 report.
If you have any questions , please send us an email to support@weekendinvesting.com
