We asked this question to Wesley Gray in our podcast if Value and Momentum should be combined. He answered our question by providing a detailed backtests suggesting that they are better off run separately as they work complimentary to each other.
We at MysticWealth run Model portfolios in Momentum and Value. We run them so separate that a different fund manager is dedicated to each.
We received the feedback that for someone to get exposure to both, the subscription fee can be very steep and eat away the alpha.
To celebrate crossing of 100% returns of MWV (17% CAGR) we are creating a website membership.
All our website subscribers will get access to BOTH the MODEL portfolios at the same subscription fees as before. See the pricing chart.
Existing subscribers can see the google sheet and see the changes have already been made.
SO HOW DO I DECIDE which one suits me!!
If you are interested in only 01 Model portfolio, you can opt for it via smallcase. You can get factor exposure to either Value or Momentum. Also, if you are managing a relatively small portfolio (2–15 lakhs) , smallcase offers ease of execution and a single click cloning of Model portfolios into your Dmat.
If you are managing a bigger portfolio and are concerned about slippages, we would suggest you to opt for MysticWealth Website membership. Also, if you are interested in getting exposure to both the factors at a reasonable price, we would recommend a website membership.
Please keep in mind, website membership would require you to manually enter your trades. While you will be able to put limit orders, you won’t have the single click ease of execution.
We have always listened to our client’s feedback. This is another example of us making our product suit your exact requirement.
Next change in pipeline is to introduce AUM based pricing for small ticket size. Expect this to be implemented in next 03 months in both our smallcase offerings.
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