We received this feedback on twitter that as far as Live data is concerned (from the day you went live) You are not beating the smallcap index.
Valid argument you might say, but a few pointers before you conclude.
First of all, we are a Multi-cap portfolio and so while our allocation to small caps automatically increases in bull market, it is never 100%. So even now in this crazy bull run our current distribution is as below
If we were 100% smallcap invested, you can safely double our performance, such is the TEAR smallcaps were ON.
Secondly, Even if you decide to judge us on smallcap index, REMEMBER that we have beaten day lights out of Smallcap Index because we are Live since April 2017 and not 2020. Our Smallcase presence is rather new (2020). We have been live since April 2017 on the website with real clients and a LIVE performance dashboard. Everyone on twitter can account for that. We have been posting our live scores since Inception.
MWM Smallcase was introduced in 2020 after receiving numerous requests.
So below chart is the actual comparison between us and Smallcap Index.
This is NOT a BACKTEST. These are actual trades.
Beating smallcap Index is NOT a Big deal. It is a CRAZY PENDULAM and it almost always go to extremes on both sides and so even if you get your timing remotely correct, you shall beat it. Our friends on twitter are just impressed with its “recent” performance and are amazed that NOT many fund managers are able to beat it.
Our real benchmark is Nifty200 30 momentum Index. Here we did a detailed webinar explaining the difference and which one you should choose. Despite its flaws, that according to us is the best option for retail to choose.
MysticWealth Momentum has beaten ALL benchmarks DRY. Be it NIFTY, NIFTY500, smallcapIndex, Nifty200 30 MOMO, PMSs, Mutual funds and anything that moves. You name it and we have beaten it, PERIOD.
so am I saying that MWM is the holy grail, that we are INVINCIBLE!!?
In my urge to prove a point about our out-performance, I may have gone over board to give that impression of invincibility, but nothing can be farther from truth.
MWM is just playing a FACTOR. A documented inefficiency which has played out decade after decade as century old data substantiates. And like any other FACTOR based investing, will have its bad days
Come a 2018 like market and we will again suck big time. A 2011 like market and you would puke your guts out as our client.
cold winters would come, no doubt but for now please get a side and let us have our time under the sun.
Originally published at http://www.mysticwealth.in.