The Momentum Fund

Active, factor based investing that anticipates behavioral biases of other investors. Pick up to 30 recent winners. Perform fundamental and liquidity sanity checks.
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the premise

Research on Momentum

  • First recognised as a factor in US academic research in the 1990s
  • Stocks that have gone up tend to continue to do so
  • Behavioural reasons include
    • - Under/over reacting to new information
    • - Herding behaviour
    • - Confirmation bias
the premise
the strategy

Up to 30 Recent Winners

  • Stocks that have passed fundamental and liquidity sanity checks
  • Revisit monthly to prune losers and add in new stocks that meet the criteria
  • Exit stocks that show sudden moves down
the strategy
the result

Active, Algorithm Based and High Performing

  • No Lock Ins, Performance Fee or Exit Charges
  • 1% management fee per year
  • Dividend Reinvested
the result

Why buy Momentum?

Outperforms most other strategies
  • The daily monitoring and tax inefficiency are a deterrent for most investors. But investors who have put in the effort have reaped rich returns from the Momentum strategy.
Strong Risk Management
  • We pick 30 stocks to diversify risk
  • Ensure greater than 3 crore daily liquidity for quick entries and exits
  • Human filters - sanity checks to avoid known rogues and exit on adverse news
Back by Research and Performance
  • Capitalmind has run a Momentum Portfolio since 2016 with strong results
  • Momentum is well researched and works across global stock markets
  • Priced in line with most mutual funds and no performance fee

Risk & Mitigation

  • Prone to manipulation, so strategy diversifies into at least 25-30 stocks.
  • Buy stocks that are reasonably liquid (greater than 3 crore every day) for a period of time.
  • Exit stocks that show a sudden draw down of more than 20%.
  • Human filter to avoid known rogues, exits on adverse events.

Returns Worth the Effort

Momentum is a breath of fresh air in a market saturated with funds that claim to be value oriented, Buffett inspired and focusing on finding the next HDFC Bank. Take advantage of behavioral biases and research for a differentiated actively managed portfolio.

Allocating to momentum

Strategy involves monthly transactions and taxes but provides an opportunity for good returns
Strategy involves monthly transactions and taxes but provides an opportunity for good returns
Suggestion: 10% to 25% of long term portfolios should be allocated to momentum
Suggestion: 10% to 25% of long term portfolios should be allocated to momentum
Works very well in strongly trending markets
Works very well in strongly trending markets
Fee: 1% per annum
Fee: 1% per annum
No entry fee, exit fee, performance fee or lock-ins
No entry fee, exit fee, performance fee or lock-ins

Join Capitalmind Wealth with the Momentum Portfolio(1% p.a fees )

We're a SEBI registered portfolio manager INP000005847

For Existing Customers

  1. Add a new goal targeting the Momentum portfolio. You can invest additional money into this.
  2. Convert part of your current allocation to the Momentum portfolio
  3. Use a “gains only” mechanism:
    • Park money in debt
    • Take out gains every quarter and invest in Momentum.

For New members:

  1. Minimum investment of Rs. 50 Lakhs (SEBI rules)
  2. You can elect for a combination of Momentum and Market Funds in:
    • A 40:60 portfolio would have 20 lakh in Momentum, 30 lakh in Market
    • Over time, top up with additional funds to increase allocation
  3. We also offer:
    • Multi-cap portfolio
    • Market Portfolio (Index investing ETFs)
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This website is owned and operated by Wizemarkets Analytics Private Limited, a SEBI registered portfolio manager. Unless otherwise specified, all return figures shown above are for illustrative purposes only, and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market circumstances.Demat services provided to clients of Wizemarkets Analytics by ICICI Bank Limited, a registered Depository Participant with both NSDL and CDSL.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Capitalmind Wealth’s charges and expenses. Capitalmind Wealth’s services are designed to assist clients in achieving discrete financial goals.

The information provided by Capitalmind Wealth through its public channels such as blogs and tweets is educational only and is not investment or tax advice.
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