We generally think only in terms of market caps and don't think in terms of strategies. A secondary objective of this video was to get us investors to explore these alternatives (momentum, value, low volatility, quality etc.) that are available to us. Personally, I made this change in my own approach in these last 2-3 years & it's certainly helping. As an extension, please also watch my data-rich video on Factor Investing for a better retention of the concept: th-cam.com/video/H9pJcu3YQOk/w-d-xo.html
@@aloksharma3712Partial. These strategies go into my opportunity portfolio which is expected to give me more returns and I don't mind the short term volatility.
Sir, the monthly numbers you posted for "NIFTY 200 MOMENTUM 30 TRI" are not the same as what I downloaded from the NSE website. Any reason why this difference? Also, if most of these 30 companies are already present in other mid-cap & flexi cap funds then it may not be very relevant and might end up overlapping.
@@saketlal8348 1. You might be downloading PRI data and not TRI data 2. I understand your quandary; I think it is next to impossible to find two funds in the large and midcap domain that will not have some overlap.
Wow! What a finding. Invented a financial concept 'momentum based switch'. Detailed analysis, exemplary knowledge. Truly impressed. Thanks a ton, a small token of gratitude - Siva from Bangalore
Thank you very much Siva for your kind appreciation and for this gratuity. I'm happy you found this useful & a secondary objective here was to get investors to look beyond market caps & evaluate their own portfolio using the strategy as the engine. Glad you like it!
Hey! I have a doubt & it's bothering me a lot, whether we have to switch our SIP amounts or we have to switch our entire money that's invested in the funds?
Thank you Krishna Mohan for your kind appreciation and for this gratuity. I'm glad you liked this video .. I've been using this strategy for sometime now and so far, it's worked.
This channel is available at a good PE in terms of learning and one can expect huge MOMENTUM on this channel 😊. Thank you Shankar sir for all the learnings you share.
Just pick three funds: Nifty 50 Index Funds One midcap funds One small cap funds You’ll end up making 14-17% CAGR over the years. Thinking less can create wealth rather than always doing something and complicating things.
@@keerthi4513 Not at all. Most of the funds would not be able to beat the index,,. lest there would not be so many mutual funds with so many permutation and combinations. Once a year this funda works and once a year another works.. in this way.. its all about working out with different reasoning.. however no one knows what really works. All that matters is results at the end... also to add every mutual funds tries to beat the relative index.. which by definition means the index is the standard.
Thanks! Dear Sir, first of all I am grateful to you for teaching such marvellous techniques. I have 2 small doubts: 1. In the momentum switch excel you have shown value of nifty 200 momentum 30 value as 23740. Whereas when checked historical trend, in December of 2022, it is not more than 20000. Please confirm if that is a typo, as I have cross checked the same in NSE data. I believe we are talking about same values of momentum index. This understanding is crucial for me. 2. If momentum index goes down at a slower rate, say 5% down per month, then the momentum switch may never activate. Is it ok to continue with momentum in that case? PS: Sir, don't worry I am asking this only for concept clarity and any investment decision will be my own responsibility.
Hello Shaleen - thank you very much for your kind appreciation and for this wonderful gratuity. I'm happy you found this video useful. 1. I am using the Nifty 200 Momentum 30 TRI (the total return index) while when you see on other websites, they'll show the PRI (price return index). TRI is PRI plus dividends so it is the more important index as it gives total shareholder returns. You can find total return index on niftyindices.com Actually here are the steps after you access niftyindices.com : 1. On the top navbar, you'll see REPORTS 2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered 3. In the top drop-down (orange color text), select "Total Returns Index Value" 3. Select Equity from next drop-down 4. Then the index you want data on 5. Then the dates 6. Click Submit 2. Yes. Even if the pace of momentum reduces, I am OK with not switching to value until the conditions are perfect for a value switch. Hope this helps
Thank you so much Mr. Rao for this kind gratuity and your appreciation. I'm glad you like my work. This particular strategy has changed my investing aswell and I'm now a big fan of having momentum in one's portfolio. Do explore "momentum" -- I have more videos on it in my channel. Thx again!
Hello Sir, Momentum switch portfolio seems like a good option for lumpsum investment, does this strategy work well with SIP-style investing? (i.e when we are invested in momentum add SIP in momentum and when we are invested in value-based fund add SIP in value fund ). How did you find out the 22% interest rate in momentum switch method since it is not mentioned anywhere in excel sheet. It would be great if you could add XIRR formula in the sheet so that we can use it in future and keep track of XIRR otherwise it would be too difficult for us to know XIRR and when to pullout in case the method fails in future.
Hello Akshay, 1. I have been using an SIP strategy for investing in a momentum index and I've also used lumpsum at time. There is no reason to suspect that an SIP strategy is not working, afterall SIP is just a way of systematic doing lumpsum payments. The same goes with value but here I've been using an active value fund (as a good index fund was not available for a long time); again I found no issues with an SIP 2. The XIRR is very easy to do. May I know what problem you are facing?
Hello SIr, I am unable to implement the formula or condition for complete switch along with SIP, at max I have implemented normal switch (i.e moving just SIP from momentum to value and vice versa, not able to move corpus )and also XIRR is giving weird number to me, is there any way I can share the excel with you?
@@akshayvengal4628 Hello Akshay, I have added a new column (column G) in the Switch worksheet with comments. docs.google.com/spreadsheets/d/16xprDbEER1yeb8RbwqeV184kKQogXKQ_xZxLiMY1QZw/edit?usp=sharing
I downloaded video 2 months back and came here to comment. Ji, seriously your video clearly makes anyone to think of painstaking and strenuous efforts you put in for making a video. The research is seriously next level. Thanks a billion for another brainstorming video.
Thank you so much 😀 🙌 I'm glad you like my work. Yes, it takes a lot of time to think, script, record & edit a video. The 15 minute videos one sees has about 40 hours of effort behind it.
@@shankarnath Yeah ji, because by watching your videos, one can easily envisage about the hard work you invest in :-) Wish you best health and mental peace ji so that we can get best content from beast..
Hello Sir, I have backtested your innovative idea of switching over between 2 ETFs but changing the fund combination. Nifty 200 Momentum 30 Index & Nifty 100 Low Volatility 30 Index Nifty 500 Momentum 50 Index & Nifty 500 Value 50 Index It is tested since inception, i.e., 1st April 2005 till 20th Dec 2024. Nifty 200 Momentum 30 index CAGR 20.90% & switching to Nifty 100 Low Volatility 30 Index resulted in a CAGR of 23.4%. Nifty 500 Momentum 50 Index CAGR 24.23% & switching to Nifty 500 Value 50 Index given astonishing CAGR of 26.9%.
Hello. Thanks for sharing this. The switching can be a bit subjective so for people who want to take the passive approach, a 50:50 in momentum and value offers around 16% over the long run -- on a rolling return basis which is a stronger indicator of probable returns.
I am novice investor and Based on this I tested with this two index fund and it's giving me 28% return in 6 month. I also have specific stocks and it's under water. I like this strategy as I need less volatility and I am fine with reasonable returns. Thank you sir.
I was trying to search for latest monthly data for 2023-2024 to decide on current momentum switch statergy but cannot find details. Sir @Shankarnath Can you please help where can I find such information for better decission?
I like this investment strategy. Its crisp and can be adjusted based on market. The only issue i see is that these are mostly ETF as there are very few mutual funds with these themes and the AUM is very small on those. Any suggestions for mutual funds following this strategy?
Thank you very much. 1. The two funds I've picked up here have ETF and Index fund (mutual fund) variants available 2. These factors will continue to have low AUM as awareness is on the lower end & many AMCs plan to launch these. Personally, a low AUM in an index based strategy has never bothered me
सर, मैं आपकी जितनी तारीफ़ करूं, उतनी कम है. In spite of having so much deep knowledge, you are very simple and down to earth. Thank you for all.🙏🙏🙏🙏🙏🙏🙏🙏🙏
Hi Shankar Sir, Thank you for sharing this amazing strategy and insights. Could you clarify if the momentum-based switch (20% over 3 months) strategy works well between Nifty200 Momentum 30 and Nifty200 Value 30 index funds instead of Nifty500 Value 50? I prefer using the same AMC for both funds, but ICICI doesn't offer Nifty500 Value 50. - Momentum: Nifty200 Momentum 30 Launch: Aug 25, 2020 | AMC: ICICI, Aditya, HDFC, Motilal - Value: Nifty200 Value 30 Launch: Jun 12, 2024 | AMC: ICICI Appreciate your thoughts!
Hello Aneesh ji. I don't use the switch strategy myself. It was built as an experiment but I'm finding it difficult identifying the switch-spots. Instead, I follow the 50:50 momentum-value strategy wherein I have two SIPs running of ₹15,000 each
Thank you so much for the clear explanation, @Shankarnath. I was also considering the implications of capital gains taxation in situations involving lump-sum exits, as well as the complexity of identifying the ideal timeframe to justify these decisions. Your practice to maintain a 50-50 split or adopt the strategy of adding funds to Momentum during bullish phases and to Value during bearish phases makes a lot of sense. Appreciated your efforts and wisdom to help financial planning of others 🙏.
@@shankarnath Thanks a lot for your response. I am seeing a discrepancy in the values mentioned in Google sheets and the actual Monthly closing Values. For Example: Dec 22 Closing is shown as 23740 in your Google Sheet. However, in NSE Website, 30th Dec 2022 closing is shown as 19444. Please let me know if I am missing something here.
@@anilkumar-pi6ep Yes, you are using PRI while I have used TRI in this study (Total Return Index) Here are the steps after you access niftyindices.com : 1. On the top navbar, you'll see REPORTS 2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered 3. In the top drop-down (orange color text), select "Total Returns Index Value" 4. Select Equity from next drop-down 5. Then the index you want data on 6. Then the dates 7. Click Submit
Been investing in value & momentum for the last 2.5 yrs & it has given me amazing returns. Thanks for the video. It cemented my belief in Value momentum strategy. PS : I do it via smallcase
I am seeing your video from last 2 times. Content you present and data analytics you use , needs lot of time and effort. Appreciate you and your team for great job done. Thanks Sankar :) Appreciated.
Dear Shankar. Fantastic work. I liked the switch method. But is it worth switching considering taxation? Imagine paying good 12.5% tax and re entering. 4 times you pay such a hefty tax. Now let us assume that we invest in momentum till momentum index drops by 20%. Let us call it “M “ basket and let it cool and don’t sell because of tax. Now start investing in value fund till index rises by 20%. Let us call it “v “ basket. Again don’t sell. Then switch back to Momentum. Does it work better?
Thank you! I am finding the switch methodology difficult to implement so I'm not using it. I've gone with the simpler 50:50 combination. Pls feel free to simulate different scenarios and see what works best for you.
Both Sankar Narayan n Sankar Nath are excellent data presenter n having very good grasp over mutual fund investment. They seems are compassionate to each single investor for his every penny. These people make the investment decisions easy for a lay investor. Respect. 🙏🏼
Brilliant video sir !!! Had a doubt ? I understood when to exit momentum and enter value but having issues regarding when to enter back into momentum from value
my sip are ppfas flexicap fund and nipoon focused equity are goping on. i have 10 lacs to invest for horizon of 10 years or more .kindly suggest equity fund for maximum return with minimum risk. my son have axis blue chip and long term advantage fund., shall we redeem and switch to other fund. sip for more than 10 years has no risk of loss? pl. suggest. regards
well done.....Nice one.. thank you... when is it a good time to get into this 50-50 combo ? when market is at peak or when it is undervalued or time doesn't matter ? pl clarify....
Thanks. Technically, there is no good or bad time because momentum and value are weakly correlated. Having said this, SIP is a preferred way of entering equities.
Indeed this video may be a game changer for most of the mutual fund investor community. The two funds investment totally simplify the investment life with once a while tweaking for higher returns. I am wondering whether the same momentum theory will work in the case of midcap/small momentum funds as well. Views will be highly appreciated.
Thank you very much, Dr. Bala. There is indeed a midcap momentum index (Nifty Midcap 150 Momentum 50). If you come to analyse that one, then please do share the results with me so that it benefits the bigger group here.
Sir In the value section, you showed nifty 50 value 20 @3:44 But when showing returns in yur study with momentum, you considered nifty 500 value 50 @4:05 Which one shall we consider
8:45 Exit meaning. Withdraw full from Momentum and invest in value or Keep the investment in Momentum fund as it is and invest fresh amount in value. (Viceversa). Please clarify.
in PE ratio based switch, if Nifty PE < 18, then we should go for Value beacause we may get stuff at lower valuation (which value investing aims) & when Nifty PE> 24 , then we should switch to Momentum Isn,t it right approach? BUt you took opposite why?
Think of this problem like a racing horse owner. Let's say your horse is well rested (PE of 18), would you tell the horse to run faster (momentum) or steady (value)? Likewise, let's say the horse is tired (PE of 24), would you tell your horse to run faster (momentum) or stead (value)?
Sir, your analysis is top class. The way you explain is exemplary. Your in depth videos are GOLD MINE. these are diamonds in the dust of other finfluencers... awesome. Keep it up sir...
Very well explained and researched. Thank you for this. When doing the switching, are you shifting all lumpsum to Value or just the SIPs of the following months?
Most welcome. Yes, a 100% switch is what I've assumed as this was lumpsum investment (not SIP). The data is all there in the worksheet; please explore multiple scenarios per your comfort
Thanks a lot, Shankar. Great wor!! In 2021, I analyzed nifty next 50 and Momentum index funds and presented them to a small group in my organization. At first, people were in disbelief at >15% return from an index fund, and some of the numbers were brutally challenged. Now, I am more comfortable with analysis as you have added more data points. Can you help with names of AMC who are doing better in both categories as well?
Most welcome, glad this video added more support to your own analysis. Feel free to pick any AMC that offers a momentum index. I have personally invested in UTI and ICICI Pru N200 M30 schemes & I think talk about tracking error is mostly noise. Perhaps you can do a 2nd analysis on N200M30 vs Nifty Midcap150 Momentum50 to see which might be more comfortable to you. In my position, I prefer the M30 because it aligns with my asset allocation aswell. If I were to move to M50, then I'll have to rejig my portfolio asset allocation aswell
@@shankarnath this is next level attention, did not expect a reply, forgive my laziness but why did you choose 3 months 20% and did you try any other variations such as 4 months and 15%? Thanks Shankar
Great content! This video specially momentum based switch part has definitely given me some food to play around with the strategy. Can I please check, as per your mentioned momentum based switch approach, what would you do if the nifty 200 momentum 30 index returns over 3 months is in between 20% and - 20%? Would you stay invested, or exit fully/partially? Thanks a lot.
Thank you! The switch mode was more of an experiment and personally, I've reduced the weightage of it in my portfolio. Over time, I've decided to give momentum a permanent allocation in my portfolio (which has worked well) and use the switch mode very tactically. But to answer your question -- in this experiment, switch means full exit
@@shankarnathSo full exit from momentum and put the entire amount as lumpsum in the value and continue SIP OR keep the invested amount in momentum and just stop SIP in it and start in Value? Can you please advice?
Really unique ,clear, convincing, simple. But we have to try in coming days then time will tell us. All these days blindly investing in both index. Returns to wait for 6 months .Thanks.
It was such a disappointment when you left ET money and now it’s such a relief that I found you again 😊 Keep enlightening us and guiding us as always… In fact I invested through ET Money just because of you Sir…. Thank You
Hello Sir, another amazing video with a new way of looking at things. However i do have one question regarding the momentum and value funds. Are the funds selected by you for the video equity funds or index funds?
Great strategy !! Did you give a try with Nifty 50 Value 20 instead of Nifty 500 Value 50? I see NV20 is very less volatile and performance is almost same as Nifty 500 Value 50.
Thanks. I didn't try it with N50V20 as I found the universe of companies too small. I mean - one doesn't need to 2nd guess which companies will be a part of it (same ol' ONGC, Coal India, Infosys, NTPC, ITC, Tech Mahindra). In that context, the N50V20 was turning into a forever portfolio of large-cap value stocks which I was not keen on. Much like momentum, I wanted a cycle set of value stocks aswell and opted for the larger overlap of using 50 stocks within the Nifty 500 set of companies. If you've done this analysis with N50V20, please do share the results. I'm curious to know
@@shankarnath Got your point. I think even if we are considering the index N50V20 which is overlapping with N200 index constituents, the overlapping would be less mostly as the factor is different. I will give a try by using N50V20.
@@shankarnath sir my humble request if you can provide us some way to fetch the data in that excel.I tried in nifty indices I think it shows normal index values instead of tri value.Please tell me the route to get Nifty 500 value 50 tri index as well as nifty 200 momentum 30 tri values
@@pappuzion1130 Here are the steps after you access niftyindices.com : 1. On the top navbar, you'll see REPORTS 2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered 3. In the top drop-down (orange color text), select "Total Returns Index Value" 3. Select Equity from next drop-down 4. Then the index you want data on (in your case it's Nifty 200 Momentum 30 or Nifty 500 Value 50) 5. Then the dates 6. Click Submit
Outstanding is the word i can say about this video...Sankar anna is superman in presentation and presenting...Curious to work with you anna...Suresh from Tamilnadu
Hi Shankar. Can you guide me the right time for a lumpsump as currently there is a dip in market, should i wait for market to correct more? Also i am thinking to invest in combination of nifty200M30 index fund & s&p bse index fund
Hi. I've not across any study that's been able to determine the right time to invest but generally: 1. Think of your worst case scenario, say 20% 2. Split your lumpsum money in 4 parts 3. Invest the 1st part when the market dips by 5% 4. Invest the 2nd part when market dips by 10%, 3rd part at 15% and last part at 20%
Shankarji, thanks for your videos that are helping investors in India. We would like to see some videos on agri-based investments as well. considering the increase in food prices, every one of us can invest a small portion of our savings and profits even if it provides FD-like returns. Please prepare videos on such opportunities as it would help our people and children, as we can see the whole world is suffering from food inflation, climate crisis and war.
Great idea! I believe we can further improve the returns by adopting a slight modification to the Switch based returns: During down trends, even Value Funds suffer significant corrections. Hence whenever the momentum index returns for 3 consecutive months is more than -20%, switch the entire investment from both the funds or at least from the Momentum Fund to Money Market Fund.. This is just a theoretical guess and needs to be verified.
The content offered by you is seriously an eye opening gem for real investors also having multiple hours of hard deep research work before uploading. ❤❤
Genuine, quality content from a true gentleman. No misselling, hype, drama. Good thing is most of your videos, make me feel like talking to you to discuss and debate the matter further. Keep up the great work. Would love to connect with you in person sometime
Momentum + Value. Food for thought, indeed. Windmill Capital on Smallcase has a Value & Momentum smallcase. For novice investors, perhaps an expert (fund manager) who rebalances the portfolio from time to time would be a good idea. Thank you for another great video. Sumeet
I am really Glad to found you to find out best Mutual funds. Currently UTI is providing these 2 categories mentiond in this video which i am planning to do SIP
Sir apka har video ek se barkar ek hota hai,aap imandari purvak investor ka margdarshan karte hai. Aap investor ko fish pakarkar dete nahi hai balki pakarne ka tarika batate hai God bless you.
Hi Shankar, first of all thank you so much for such a depth and valuable content, which i am pretty sure isnt done over a night but rather lot of research has been on done it over a period of time. Keep posting such shining contents. I was checking nifty 500 value 50 fund today and it seems there are lot of govt companies , bit worried if i should go ahead with investing in that fund as circumstances have changed a lot in last 20 years . Would like to hear more from you on it ?
Thank you very much for your kind words and appreciation. "Value" will always see many government companies because they often ascribe with the value definition i.e. low PE, low PB, high dividend yield etc. Personally, I don't get worried on the constituents of indices as the index is expected to follow a particular methodology and what comes per that approach is what you get. If we start an inquisition on every component, then perhaps an index is not the right instrument. In my case, I leave index analysis to the data (trailing returns, rolling returns, point of entry/exit, volatility & sometimes Sharpe ratio) and don't peek into the constituents. Hope this helps some
Are these the mutual funds in market to implement the concept a) UTI Nifty 500 Value 50 Index Fund b) HDFC Nifty 200 Momentum 30 ETF ( I see other funds in category , but selected this as it had better performance ) , Pls clarify
I personally don't use some intricate science around differentiating between index funds. Having said this, I prefer the ones with high AUM (again, not the highest .. anything above 300 crores is comfortable for me) as it means there is a dedicated team to manage it. The only other thing I might see is the expense ratio and I prefer a middling number (not too low and not too high)
@shankarnath sir thanks for the video . One missing part of the video might be - what is the best weightage one can give to get most out of both of these founds for a longer term. is it 50% momentum - 50% value 60% momentum - 40% value. Please share with us if you have already back tested such approach and if yes - does 50-50 in both funds still stand at the first place in your recommendations ?
Another great video and high-quality content. I'm learning a lot through your video series. Great job. Could you share ETF/MF that offers both of them?
Most welcome. You can check out many options on platforms like Fisdom, Groww, ET Money, Valueresearchonline etc. Schemes (MF & ETF) exist from ICICI, HDFC, UTI, Aditya Birla etc.
But sir I could see these new age momentum and value funds have started only 1 or 2 yrs ago?.How can we rely on these funds sir? Sorry how you retrieved data from past 17 years?
@@pappuzion1130 It's like how so many investors have put in their money in Midcap 150 and Smallcap 250 indices. These ETFs and index funds are quite recent aswell but because they follow a methodology, the results of that method can be back tracked for many years. So in the case of midcap and smallcap indices the data extends until 01.04.2005. The same is the same with factor funds are you can find the back-tested data going into many years in the past. To access earlier data, please use niftyindices.com
Hi Shankar, First of all thanks a lot for making such content of pure Value for average investors like me. Regarding the mutual funds which are based on these indexes, do you think they can replicate the performance of the momentum or value indexes in the long run and how do we find the tracking error of these momentum and value index funds. I have tried to search but without any luck so far.Will really appreciate if you can point me to anything.
Thank you! The indices I used in this video (and I think I mentioned it) have a related index fund. So minus 0.3 to 0.4% for expense ratio, these index funds's perform should historically match the index based analysis I did. I couldn't work on fund NAVs in this case because the funds itself are just 1 to 2 years in existence .. and my study took the last 17 years of data. Hope this helps.
This video is really helpful as I'm a beginner. I'm intrigued about the switching techniques you've mentioned. Can you please share more switching technique that we can follow or the indicators to follow. Any references is appreciated. Thanks a lot for this :)
Thank you! I built a simple switch model in the way I was comfortable with, this wasn't some documented approach. Please feel free to try your own way although I must add - the 50:50 allocation is also quite powerful
Excellent work as always Shankar. Love your data based no nonsense approach. Please consider making a video on how you actually run these back tests. I'm not from a management/tech background so I'd greatly appreciate if you laid out the framework you use to sift through data.
Very interesting presentation, @shankarnath . Wanted to check , in the worksheet, do the rolling returns pertain to the 50:50 momentum and value ? Or with the switch strategy?
@shankarnath momentum ibdex has grown 68% in 1 year. Almost 20% in 3 months, trigerring the switch. Do you think, its a good idea to switch from nifty 5p fund completely to a momentum fund. And then build momentum +value portfolio?
Shankar sir, been glued to your channel and particularly interested in and exploring the idea of investing in Momentum + Value. Was trying to play with the excel shared by you for closing Total return index values and to know which one is better at current market levels etc. Finding it difficult to find the data from nifty indices for closing TR index values for nifty 200 momentum 30 index. I only see price data available not the TR data. can you please possible guide how to get the TR data for 2023 ( as your sheet already has till Dec 22 so that i wont need ). Thanks in advance sir and Happy weekend.
Thank you very much for your kind appreciation Narender ji. For TRI, here are the steps after you access niftyindices.com : 1. On the top navbar, you'll see REPORTS 2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered 3. In the top drop-down (orange color text), select "Total Returns Index Value" 3. Select Equity from next drop-down 4. Then the index you want data on (in your case it's Nifty 200 Momentum 30 or Nifty 500 Value 50) 5. Then the dates 6. Click Submit
Good one. Nice simple looking strategies which retailer also can try. Could you help to see the returns if momentum switch is used between Mom30 and a balance/debt fund instead of value index ?
Thx. Personally, I wont use any actively managed fund as part of this strategy whether its contra or value. I explained my wrinkle with contra funds in the video on contrarian investing. Link: th-cam.com/video/EtuJa-TnSc4/w-d-xo.html
Not currently Vinod ji. Right now I'm very focussed on my newsletter and starting my community. Courses will be a part of the community access and also will be offered separately -- but this might take another 5-6 months. Sorry about that!
@@shankarnath Thank you sir. I am an engineer and I really want to learn the intricacies of the markets to get invested. Would you plz if possible make a video on where and how to start to study the financial markets in a proper manner plz??
Sir I'm stuck in choosing between two fund's flexy cap or opportunity fund I'm long term investor and also buy Growth stocks so according to me i should prefer flexy cap value fund like ppfas rather than picking opportunity fund as i myself already putting my money in value stocks please give ur thoughts on this
We generally think only in terms of market caps and don't think in terms of strategies. A secondary objective of this video was to get us investors to explore these alternatives (momentum, value, low volatility, quality etc.) that are available to us. Personally, I made this change in my own approach in these last 2-3 years & it's certainly helping. As an extension, please also watch my data-rich video on Factor Investing for a better retention of the concept: th-cam.com/video/H9pJcu3YQOk/w-d-xo.html
Superb sir. You are a scientists. this is great thing. Are you invested entire portfolio in this strategy or partial?
@@aloksharma3712Partial. These strategies go into my opportunity portfolio which is expected to give me more returns and I don't mind the short term volatility.
Hii sir can u suggest any mfs for the strategies discussed in the video
Sir, the monthly numbers you posted for "NIFTY 200 MOMENTUM 30 TRI" are not the same as what I downloaded from the NSE website. Any reason why this difference? Also, if most of these 30 companies are already present in other mid-cap & flexi cap funds then it may not be very relevant and might end up overlapping.
@@saketlal8348
1. You might be downloading PRI data and not TRI data
2. I understand your quandary; I think it is next to impossible to find two funds in the large and midcap domain that will not have some overlap.
Wow! What a finding. Invented a financial concept 'momentum based switch'. Detailed analysis, exemplary knowledge. Truly impressed. Thanks a ton, a small token of gratitude - Siva from Bangalore
Thank you very much Siva for your kind appreciation and for this gratuity. I'm happy you found this useful & a secondary objective here was to get investors to look beyond market caps & evaluate their own portfolio using the strategy as the engine. Glad you like it!
Hey! I have a doubt & it's bothering me a lot, whether we have to switch our SIP amounts or we have to switch our entire money that's invested in the funds?
@@shankarnathsir please give answer to this query
@@AG444FF Please go through some of the other comments. This question has been asked & answered multiple times
@@shankarnath ok thanks sir
Just wonderful! I love the data approach! Liek someone said its GOLD!
Simply the math and understanding is more educational!
Thanks
Thank you very much, Mr. Kalyan for your kind appreciation and for this gratuity. I'm glad you liked my work
the backtesting without any filler lines to extend the length of the video, honestly this channel deserves a lot lot more! Well done!
Thank you!
Thanks for your hard work
Thank you Krishna Mohan for your kind appreciation and for this gratuity. I'm glad you liked this video .. I've been using this strategy for sometime now and so far, it's worked.
This channel is available at a good PE in terms of learning and one can expect huge MOMENTUM on this channel 😊. Thank you Shankar sir for all the learnings you share.
Perfectly explained about this channel
Thank you very much! I'm happy to be playing a small part in your financial journey
Just pick three funds:
Nifty 50 Index Funds
One midcap funds
One small cap funds
You’ll end up making 14-17% CAGR over the years. Thinking less can create wealth rather than always doing something and complicating things.
@@keerthi4513 Not at all. Most of the funds would not be able to beat the index,,. lest there would not be so many mutual funds with so many permutation and combinations. Once a year this funda works and once a year another works.. in this way.. its all about working out with different reasoning.. however no one knows what really works. All that matters is results at the end... also to add every mutual funds tries to beat the relative index.. which by definition means the index is the standard.
Very nicely explained
Yes, small cap index fund beats most of active funds of that category and similar story for other indexes as well
I prefer UTI Nifty 50 fund.
Completely agree with you.
Thanks!
Dear Sir, first of all I am grateful to you for teaching such marvellous techniques. I have 2 small doubts:
1. In the momentum switch excel you have shown value of nifty 200 momentum 30 value as 23740. Whereas when checked historical trend, in December of 2022, it is not more than 20000. Please confirm if that is a typo, as I have cross checked the same in NSE data. I believe we are talking about same values of momentum index. This understanding is crucial for me.
2. If momentum index goes down at a slower rate, say 5% down per month, then the momentum switch may never activate. Is it ok to continue with momentum in that case?
PS: Sir, don't worry I am asking this only for concept clarity and any investment decision will be my own responsibility.
Hello Shaleen - thank you very much for your kind appreciation and for this wonderful gratuity. I'm happy you found this video useful.
1. I am using the Nifty 200 Momentum 30 TRI (the total return index) while when you see on other websites, they'll show the PRI (price return index). TRI is PRI plus dividends so it is the more important index as it gives total shareholder returns. You can find total return index on niftyindices.com
Actually here are the steps after you access niftyindices.com :
1. On the top navbar, you'll see REPORTS
2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered
3. In the top drop-down (orange color text), select "Total Returns Index Value"
3. Select Equity from next drop-down
4. Then the index you want data on
5. Then the dates
6. Click Submit
2. Yes. Even if the pace of momentum reduces, I am OK with not switching to value until the conditions are perfect for a value switch.
Hope this helps
@@shankarnath Dear Sir, that helped me a lot. Thanks for your kindness to respond in detail.
This video is very convincing in terms of strategy. I am going to go 50-50 on these two index funds for next 10 years.
You're a gem of an individual Mr Shankar, keep up the good work and hope fortune shines over you and your family.
So nice of you. Thank you very much for your good wishes 🙌
Thanks
Thank you so much Mr. Rao for this kind gratuity and your appreciation. I'm glad you like my work. This particular strategy has changed my investing aswell and I'm now a big fan of having momentum in one's portfolio. Do explore "momentum" -- I have more videos on it in my channel. Thx again!
This is by far the best and a very quantitative approach and presentation on fund selection. 😊 Awesome simply awesome
Thank you so much 🙌
Thanks
Thank you very much for your kind appreciation and for this nice gratuity. I'm glad you found this video informative and helpful. 🙌
This channel is pure gold .
However this channel seems to prefer equity over gold.
Thank you Siddharth 🙌 Glad you like my work
Amen !
Indeed
Diamond.
Hello Sir,
Momentum switch portfolio seems like a good option for lumpsum investment, does this strategy work well with SIP-style investing? (i.e when we are invested in momentum add SIP in momentum and when we are invested in value-based fund add SIP in value fund ).
How did you find out the 22% interest rate in momentum switch method since it is not mentioned anywhere in excel sheet. It would be great if you could add XIRR formula in the sheet so that we can use it in future and keep track of XIRR otherwise it would be too difficult for us to know XIRR and when to pullout in case the method fails in future.
Hello Akshay,
1. I have been using an SIP strategy for investing in a momentum index and I've also used lumpsum at time. There is no reason to suspect that an SIP strategy is not working, afterall SIP is just a way of systematic doing lumpsum payments. The same goes with value but here I've been using an active value fund (as a good index fund was not available for a long time); again I found no issues with an SIP
2. The XIRR is very easy to do. May I know what problem you are facing?
Hello SIr,
I am unable to implement the formula or condition for complete switch along with SIP, at max I have implemented normal switch (i.e moving just SIP from momentum to value and vice versa, not able to move corpus )and also XIRR is giving weird number to me, is there any way I can share the excel with you?
@@akshayvengal4628 Hello Akshay, I have added a new column (column G) in the Switch worksheet with comments. docs.google.com/spreadsheets/d/16xprDbEER1yeb8RbwqeV184kKQogXKQ_xZxLiMY1QZw/edit?usp=sharing
Thanks a lot sir, will test this out with small lumpsum amount, since now we have mutual funds for both the indices N200M30 and N500V50.
I downloaded video 2 months back and came here to comment. Ji, seriously your video clearly makes anyone to think of painstaking and strenuous efforts you put in for making a video. The research is seriously next level. Thanks a billion for another brainstorming video.
Thank you so much 😀 🙌 I'm glad you like my work. Yes, it takes a lot of time to think, script, record & edit a video. The 15 minute videos one sees has about 40 hours of effort behind it.
@@shankarnath Yeah ji, because by watching your videos, one can easily envisage about the hard work you invest in :-) Wish you best health and mental peace ji so that we can get best content from beast..
@@pkprprempavankumar8749 Thank you!
@@shankarnath🙏🏼
🙏
Hello Sir, I have backtested your innovative idea of switching over between 2 ETFs but changing the fund combination.
Nifty 200 Momentum 30 Index & Nifty 100 Low Volatility 30 Index
Nifty 500 Momentum 50 Index & Nifty 500 Value 50 Index
It is tested since inception, i.e., 1st April 2005 till 20th Dec 2024.
Nifty 200 Momentum 30 index CAGR 20.90% & switching to Nifty 100 Low Volatility 30 Index resulted in a CAGR of 23.4%.
Nifty 500 Momentum 50 Index CAGR 24.23% & switching to Nifty 500 Value 50 Index given astonishing CAGR of 26.9%.
Hello. Thanks for sharing this. The switching can be a bit subjective so for people who want to take the passive approach, a 50:50 in momentum and value offers around 16% over the long run -- on a rolling return basis which is a stronger indicator of probable returns.
@shankarnath Thanks 👍🏼
Shankar speaks world listening. Only content no cut outs. Thank you sirji
Most welcome 🙌
I am novice investor and Based on this I tested with this two index fund and it's giving me 28% return in 6 month. I also have specific stocks and it's under water. I like this strategy as I need less volatility and I am fine with reasonable returns. Thank you sir.
Most welcome
Which are those 2 index fund??
@@prasadp374.04
Always exceeding expectations. What I really like about this channel is using data extensively.
Thank you very much! Glad you liked it
Great video and entirely different perspectives.. of research.. loved it
Glad you enjoyed it!
I was trying to search for latest monthly data for 2023-2024 to decide on current momentum switch statergy but cannot find details. Sir @Shankarnath Can you please help where can I find such information for better decission?
@@arjungupta4816NSE Total return index values
No show off, pure class... Your channel is ready for a subscribers compounding sir... Respect sir...
Glad you find my work useful and informative!
I like this investment strategy. Its crisp and can be adjusted based on market. The only issue i see is that these are mostly ETF as there are very few mutual funds with these themes and the AUM is very small on those. Any suggestions for mutual funds following this strategy?
Thank you very much.
1. The two funds I've picked up here have ETF and Index fund (mutual fund) variants available
2. These factors will continue to have low AUM as awareness is on the lower end & many AMCs plan to launch these. Personally, a low AUM in an index based strategy has never bothered me
सर, मैं आपकी जितनी तारीफ़ करूं, उतनी कम है. In spite of having so much deep knowledge, you are very simple and down to earth. Thank you for all.🙏🙏🙏🙏🙏🙏🙏🙏🙏
Bahut bahut dhayanwad apka. Glad you are finding my content useful and informative
The most impressive value investing channel I have seen on TH-cam. Keep up the good work.
Wow, thank you!
@@shankarnath can you pl share your email address and do you collaborate with businesses / brands?
@@ecinfosolutions It's hello@beginnersbuck.com .. I do promotions and paid collaborations
Is there any platform that can support codifying the momentum based switching, or PE based switching automatically for retail investors?
Hi Shankar Sir,
Thank you for sharing this amazing strategy and insights. Could you clarify if the momentum-based switch (20% over 3 months) strategy works well between Nifty200 Momentum 30 and Nifty200 Value 30 index funds instead of Nifty500 Value 50?
I prefer using the same AMC for both funds, but ICICI doesn't offer Nifty500 Value 50.
- Momentum: Nifty200 Momentum 30
Launch: Aug 25, 2020 | AMC: ICICI, Aditya, HDFC, Motilal
- Value: Nifty200 Value 30
Launch: Jun 12, 2024 | AMC: ICICI
Appreciate your thoughts!
Hello Aneesh ji. I don't use the switch strategy myself. It was built as an experiment but I'm finding it difficult identifying the switch-spots.
Instead, I follow the 50:50 momentum-value strategy wherein I have two SIPs running of ₹15,000 each
Thank you so much for the clear explanation, @Shankarnath. I was also considering the implications of capital gains taxation in situations involving lump-sum exits, as well as the complexity of identifying the ideal timeframe to justify these decisions. Your practice to maintain a 50-50 split or adopt the strategy of adding funds to Momentum during bullish phases and to Value during bearish phases makes a lot of sense. Appreciated your efforts and wisdom to help financial planning of others 🙏.
Really good video sir. Very few good youtubers like you with futuristic outlook. Thanks
Most welcome. I appreciate that!
Eye opener. Thanks for the video.
My pleasure! 🙌
Namaste Shankar Ji, you are ahead of other TH-cam, content creators, competitors, your content is gold!
Wow, thank you. I'm happy to be making a small impact on your investing journey
This video is a pure gem.. However, I have a query.. Can you please let me know where to find 2023-Current Momentum data?
Thanks. You can extract the information from niftyindices.com .. go here: niftyindices.com/reports/historical-data
@@shankarnath Thanks a lot for your response. I am seeing a discrepancy in the values mentioned in Google sheets and the actual Monthly closing Values.
For Example: Dec 22 Closing is shown as 23740 in your Google Sheet. However, in NSE Website, 30th Dec 2022 closing is shown as 19444.
Please let me know if I am missing something here.
@@anilkumar-pi6ep Yes, you are using PRI while I have used TRI in this study (Total Return Index)
Here are the steps after you access niftyindices.com :
1. On the top navbar, you'll see REPORTS
2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered
3. In the top drop-down (orange color text), select "Total Returns Index Value"
4. Select Equity from next drop-down
5. Then the index you want data on
6. Then the dates
7. Click Submit
Been investing in value & momentum for the last 2.5 yrs & it has given me amazing returns.
Thanks for the video. It cemented my belief in Value momentum strategy.
PS : I do it via smallcase
Glad to hear that. Most welcome!
Please share the name of the the small case
+1
@darshannaik892 which smallcase is it ?
Windmill capital, Value & Momentum Smallcase.
I am seeing your video from last 2 times. Content you present and data analytics you use , needs lot of time and effort. Appreciate you and your team for great job done. Thanks Sankar :) Appreciated.
So nice of you. Thank you very much for the kind words and appreciation!
You are one of the best you tuber. Thanks a lot for your efforts. Regards.
So nice of you. Thank you very much Abdul ji 🙌
Dear Shankar. Fantastic work. I liked the switch method. But is it worth switching considering taxation? Imagine paying good 12.5% tax and re entering. 4 times you pay such a hefty tax. Now let us assume that we invest in momentum till momentum index drops by 20%. Let us call it “M “ basket and let it cool and don’t sell because of tax. Now start investing in value fund till index rises by 20%. Let us call it “v “ basket. Again don’t sell. Then switch back to Momentum. Does it work better?
Thank you! I am finding the switch methodology difficult to implement so I'm not using it. I've gone with the simpler 50:50 combination. Pls feel free to simulate different scenarios and see what works best for you.
Brilliant video...can you start a small case that has this momentum switching strategy
Thanks! It's just two funds, a smallcase might not be warranted for this. I'll work out some other way to update this
@@shankarnath thank you. Looking forward to your solution
Pretty impressed with the research and hard work that went into making it so simple to understand. Well done team !!
Much appreciated! 🙌
Both Sankar Narayan n Sankar Nath are excellent data presenter n having very good grasp over mutual fund investment. They seems are compassionate to each single investor for his every penny. These people make the investment decisions easy for a lay investor. Respect. 🙏🏼
Thank you very much, Pulin ji. I'm glad you like my style of presentation and the video content.
Brilliant video sir !!! Had a doubt ? I understood when to exit momentum and enter value but having issues regarding when to enter back into momentum from value
Thank you. Timing will always be an issue. Personally, I don't bother -- I'm following a 50:50 combination.
my sip are ppfas flexicap fund and nipoon focused equity are goping on.
i have 10 lacs to invest for horizon of 10 years or more .kindly suggest equity fund for maximum return with minimum risk.
my son have axis blue chip and long term advantage fund., shall we redeem and switch to other fund.
sip for more than 10 years has no risk of loss?
pl. suggest.
regards
Excellent Analysis Sir ... Keep it up..
One question...
Can we invest 50-50 in both funds and avoid switching ?
Thanks. The 50-50 scenario was covered in the video. If you are comfortable with the results, please follow that
@@shankarnath Thanks
Absolutely brilliant! Thanks a lot for sharing the worksheet!
My pleasure! Please write back if you figure an alternative strategy or tweak that can help improve returns or reduce volatility
well done.....Nice one.. thank you... when is it a good time to get into this 50-50 combo ? when market is at peak or when it is undervalued or time doesn't matter ? pl clarify....
Thanks. Technically, there is no good or bad time because momentum and value are weakly correlated. Having said this, SIP is a preferred way of entering equities.
This types of videos always helps a young investor like me!!! Thank you sir for your hard work🙏
My pleasure! Glad you are finding it helpful and informative
After going through multiple videos, I finally found this one that answers all my questions.. Thanks Mr. Nath
Happy to help! 🙌
Indeed this video may be a game changer for most of the mutual fund investor community. The two funds investment totally simplify the investment life with once a while tweaking for higher returns.
I am wondering whether the same momentum theory will work in the case of midcap/small momentum funds as well. Views will be highly appreciated.
Thank you very much, Dr. Bala. There is indeed a midcap momentum index (Nifty Midcap 150 Momentum 50). If you come to analyse that one, then please do share the results with me so that it benefits the bigger group here.
Sir
In the value section, you showed nifty 50 value 20 @3:44
But when showing returns in yur study with momentum, you considered nifty 500 value 50 @4:05
Which one shall we consider
The study was done using Nifty 500 Value 50 - pls use that. The Nifty 50 Value 20 was just a slide I picked from a previous video, you can ignore that
@@shankarnath
But sir
I compared the returns and risk of nifty 50 value 20
It is better than nifty 500 value 50.
Can you pls also that once
8:45 Exit meaning. Withdraw full from Momentum and invest in value or Keep the investment in Momentum fund as it is and invest fresh amount in value. (Viceversa). Please clarify.
Yes, its complete exit. Sell -- lock, stock and barrel. That's what the simulation assumed.
@@shankarnathThanks for clarification.
in PE ratio based switch, if Nifty PE < 18, then we should go for Value beacause we may get stuff at lower valuation (which value investing aims) & when Nifty PE> 24 , then we should switch to Momentum Isn,t it right approach? BUt you took opposite why?
Think of this problem like a racing horse owner. Let's say your horse is well rested (PE of 18), would you tell the horse to run faster (momentum) or steady (value)? Likewise, let's say the horse is tired (PE of 24), would you tell your horse to run faster (momentum) or stead (value)?
Very nice presentation, Shankar sir : your channel content is awesome. Thanks for sharing the knowledge with us ❤
My pleasure. Glad you are finding the videos on my channel useful and informative.
They way of your presentation of your video is excellent and it’s highly professional
Thank you very much
Sir, your analysis is top class. The way you explain is exemplary. Your in depth videos are GOLD MINE.
these are diamonds in the dust of other finfluencers... awesome. Keep it up sir...
So nice of you. Thank you very much for your kind words and appreciation!
Thank you Sir 🙏 your videos really help a lot.
So nice of you. You're most welcome! 🙌
Very well explained and researched. Thank you for this. When doing the switching, are you shifting all lumpsum to Value or just the SIPs of the following months?
Most welcome. Yes, a 100% switch is what I've assumed as this was lumpsum investment (not SIP). The data is all there in the worksheet; please explore multiple scenarios per your comfort
Thanks a lot, Shankar. Great wor!! In 2021, I analyzed nifty next 50 and Momentum index funds and presented them to a small group in my organization. At first, people were in disbelief at >15% return from an index fund, and some of the numbers were brutally challenged. Now, I am more comfortable with analysis as you have added more data points. Can you help with names of AMC who are doing better in both categories as well?
Most welcome, glad this video added more support to your own analysis. Feel free to pick any AMC that offers a momentum index. I have personally invested in UTI and ICICI Pru N200 M30 schemes & I think talk about tracking error is mostly noise. Perhaps you can do a 2nd analysis on N200M30 vs Nifty Midcap150 Momentum50 to see which might be more comfortable to you. In my position, I prefer the M30 because it aligns with my asset allocation aswell. If I were to move to M50, then I'll have to rejig my portfolio asset allocation aswell
Thanks . This helps @@shankarnath
@@shankarnath Sir any recommendation in AMC for value index fund?
Very insightful, Shankar.
Thank you
@@shankarnath this is next level attention, did not expect a reply, forgive my laziness but why did you choose 3 months 20% and did you try any other variations such as 4 months and 15%?
Thanks Shankar
Thanks Shankar, as usual the presentation is full of wisdom.❤
Thank you very much, Karthikeyan ji
Great content! This video specially momentum based switch part has definitely given me some food to play around with the strategy. Can I please check, as per your mentioned momentum based switch approach, what would you do if the nifty 200 momentum 30 index returns over 3 months is in between 20% and - 20%? Would you stay invested, or exit fully/partially? Thanks a lot.
Thank you! The switch mode was more of an experiment and personally, I've reduced the weightage of it in my portfolio. Over time, I've decided to give momentum a permanent allocation in my portfolio (which has worked well) and use the switch mode very tactically. But to answer your question -- in this experiment, switch means full exit
@@shankarnathSo full exit from momentum and put the entire amount as lumpsum in the value and continue SIP OR keep the invested amount in momentum and just stop SIP in it and start in Value? Can you please advice?
Really Pure Gold ..Deep knowledge.Keep doing great work Shankar Sir
Thank you very much, Rajesh ji
Really unique ,clear, convincing, simple. But we have to try in coming days then time will tell us. All these days blindly investing in both index. Returns to wait for 6 months .Thanks.
Thanks
It was such a disappointment when you left ET money and now it’s such a relief that I found you again 😊
Keep enlightening us and guiding us as always… In fact I invested through ET Money just because of you Sir…. Thank You
Thank you for your continued patronage
The content is pure gold. Keep up the good work Shankar.
Thanks Ashish ji
Hello Sir, another amazing video with a new way of looking at things. However i do have one question regarding the momentum and value funds. Are the funds selected by you for the video equity funds or index funds?
Thanks. They are equity and index funds.
Great strategy !! Did you give a try with Nifty 50 Value 20 instead of Nifty 500 Value 50? I see NV20 is very less volatile and performance is almost same as Nifty 500 Value 50.
Thanks. I didn't try it with N50V20 as I found the universe of companies too small. I mean - one doesn't need to 2nd guess which companies will be a part of it (same ol' ONGC, Coal India, Infosys, NTPC, ITC, Tech Mahindra). In that context, the N50V20 was turning into a forever portfolio of large-cap value stocks which I was not keen on. Much like momentum, I wanted a cycle set of value stocks aswell and opted for the larger overlap of using 50 stocks within the Nifty 500 set of companies.
If you've done this analysis with N50V20, please do share the results. I'm curious to know
@@shankarnath Got your point. I think even if we are considering the index N50V20 which is overlapping with N200 index constituents, the overlapping would be less mostly as the factor is different. I will give a try by using N50V20.
@@shankarnath sir my humble request if you can provide us some way to fetch the data in that excel.I tried in nifty indices I think it shows normal index values instead of tri value.Please tell me the route to get Nifty 500 value 50 tri index as well as nifty 200 momentum 30 tri values
@@pappuzion1130 Here are the steps after you access niftyindices.com :
1. On the top navbar, you'll see REPORTS
2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered
3. In the top drop-down (orange color text), select "Total Returns Index Value"
3. Select Equity from next drop-down
4. Then the index you want data on (in your case it's Nifty 200 Momentum 30 or Nifty 500 Value 50)
5. Then the dates
6. Click Submit
Outstanding is the word i can say about this video...Sankar anna is superman in presentation and presenting...Curious to work with you anna...Suresh from Tamilnadu
Thank you very much Suresh 🙌
Hi Shankar. Can you guide me the right time for a lumpsump as currently there is a dip in market, should i wait for market to correct more? Also i am thinking to invest in combination of nifty200M30 index fund & s&p bse index fund
Hi. I've not across any study that's been able to determine the right time to invest but generally:
1. Think of your worst case scenario, say 20%
2. Split your lumpsum money in 4 parts
3. Invest the 1st part when the market dips by 5%
4. Invest the 2nd part when market dips by 10%, 3rd part at 15% and last part at 20%
@@shankarnath Thanks.🙏
Shankarji, thanks for your videos that are helping investors in India. We would like to see some videos on agri-based investments as well. considering the increase in food prices, every one of us can invest a small portion of our savings and profits even if it provides FD-like returns. Please prepare videos on such opportunities as it would help our people and children, as we can see the whole world is suffering from food inflation, climate crisis and war.
Thanks for the suggestion
I searched for a MF agri based scheme. I found one by ABSL. However, it seems to be now merged with other global investment scheme....
Great idea! I believe we can further improve the returns by adopting a slight modification to the Switch based returns: During down trends, even Value Funds suffer significant corrections. Hence whenever the momentum index returns for 3 consecutive months is more than -20%, switch the entire investment from both the funds or at least from the Momentum Fund to Money Market Fund.. This is just a theoretical guess and needs to be verified.
Sir you never disappoint in bringing out such unique data backed topics which hardly anyone talks about 🙌
Thank you very much Harshit ji. Glad you liked it
The content offered by you is seriously an eye opening gem for real investors also having multiple hours of hard deep research work before uploading. ❤❤
Thank you very much
Genuine, quality content from a true gentleman. No misselling, hype, drama. Good thing is most of your videos, make me feel like talking to you to discuss and debate the matter further. Keep up the great work. Would love to connect with you in person sometime
Thank you very much for your kind words and appreciation
Momentum + Value. Food for thought, indeed. Windmill Capital on Smallcase has a Value & Momentum smallcase. For novice investors, perhaps an expert (fund manager) who rebalances the portfolio from time to time would be a good idea. Thank you for another great video. Sumeet
Most welcome. Glad you liked it!
I am really Glad to found you to find out best Mutual funds. Currently UTI is providing these 2 categories mentiond in this video which i am planning to do SIP
Did that yesterday..it's one of the best schemes although PPL are scared after Sharad Mehta case I believe..
Sir apka har video ek se barkar ek hota hai,aap imandari purvak investor ka margdarshan karte hai. Aap investor ko fish pakarkar dete nahi hai balki pakarne ka tarika batate hai God bless you.
aapka bahut bahut dhanyavaad. mujhe khushi hai apko mera kaam pasand aaya
Hi Shankar, first of all thank you so much for such a depth and valuable content, which i am pretty sure isnt done over a night but rather lot of research has been on done it over a period of time. Keep posting such shining contents.
I was checking nifty 500 value 50 fund today and it seems there are lot of govt companies , bit worried if i should go ahead with investing in that fund as circumstances have changed a lot in last 20 years . Would like to hear more from you on it ?
Thank you very much for your kind words and appreciation. "Value" will always see many government companies because they often ascribe with the value definition i.e. low PE, low PB, high dividend yield etc.
Personally, I don't get worried on the constituents of indices as the index is expected to follow a particular methodology and what comes per that approach is what you get. If we start an inquisition on every component, then perhaps an index is not the right instrument. In my case, I leave index analysis to the data (trailing returns, rolling returns, point of entry/exit, volatility & sometimes Sharpe ratio) and don't peek into the constituents.
Hope this helps some
Excellent analysis
Thank you!
This is god gift 24 carrots gold channel, with flaw less contents, simplifying financial journey to many thanks a lot Shankar sir ❤
God not g
Thank you very much. I'm glad you found the video informative and useful
24 carrots? 24 gaajar?
Are these the mutual funds in market to implement the concept a) UTI Nifty 500 Value 50 Index Fund b) HDFC Nifty 200 Momentum 30 ETF ( I see other funds in category , but selected this as it had better performance ) , Pls clarify
I personally don't use some intricate science around differentiating between index funds. Having said this, I prefer the ones with high AUM (again, not the highest .. anything above 300 crores is comfortable for me) as it means there is a dedicated team to manage it. The only other thing I might see is the expense ratio and I prefer a middling number (not too low and not too high)
what are the 2 names finally ?
NIFTY 200 MOMENTUM 30 INDEX
NIFTY 500 VALUE 50 INDEX
Thanks for time save@@yogeshshewale2
@@yogeshshewale2
@@yogeshshewale2thnx. U saved my 11 min.
@shankarnath sir thanks for the video . One missing part of the video might be - what is the best weightage one can give to get most out of both of these founds for a longer term. is it
50% momentum - 50% value
60% momentum - 40% value.
Please share with us if you have already back tested such approach and if yes - does 50-50 in both funds still stand at the first place in your recommendations ?
The data dump is available in the worksheet (link in description). Please feel free to try out multiple scenarios.
Another great video and high-quality content. I'm learning a lot through your video series. Great job. Could you share ETF/MF that offers both of them?
Most welcome. You can check out many options on platforms like Fisdom, Groww, ET Money, Valueresearchonline etc. Schemes (MF & ETF) exist from ICICI, HDFC, UTI, Aditya Birla etc.
But sir I could see these new age momentum and value funds have started only 1 or 2 yrs ago?.How can we rely on these funds sir? Sorry how you retrieved data from past 17 years?
@@pappuzion1130 It's like how so many investors have put in their money in Midcap 150 and Smallcap 250 indices. These ETFs and index funds are quite recent aswell but because they follow a methodology, the results of that method can be back tracked for many years. So in the case of midcap and smallcap indices the data extends until 01.04.2005. The same is the same with factor funds are you can find the back-tested data going into many years in the past. To access earlier data, please use niftyindices.com
Thank you sir
Thank you sir @shankarnath
Very good i am learning with your video since 4 year
Glad to hear that 🙌
Can anyone give the name of those to mutual funds having value and momentum
Let me know if anyone finds one.
Nifty 200 Momentum 30
Dear Sir, you videos are awesome. Keep it up. All the best Sir!
So nice of you. Thanks!
Hi Shankar,
First of all thanks a lot for making such content of pure Value for average investors like me.
Regarding the mutual funds which are based on these indexes, do you think they can replicate the performance of the momentum or value indexes in the long run and how do we find the tracking error of these momentum and value index funds. I have tried to search but without any luck so far.Will really appreciate if you can point me to anything.
Thank you! The indices I used in this video (and I think I mentioned it) have a related index fund. So minus 0.3 to 0.4% for expense ratio, these index funds's perform should historically match the index based analysis I did. I couldn't work on fund NAVs in this case because the funds itself are just 1 to 2 years in existence .. and my study took the last 17 years of data. Hope this helps.
This video is really helpful as I'm a beginner. I'm intrigued about the switching techniques you've mentioned. Can you please share more switching technique that we can follow or the indicators to follow. Any references is appreciated. Thanks a lot for this :)
Thank you! I built a simple switch model in the way I was comfortable with, this wasn't some documented approach. Please feel free to try your own way although I must add - the 50:50 allocation is also quite powerful
Excellent work as always Shankar. Love your data based no nonsense approach. Please consider making a video on how you actually run these back tests. I'm not from a management/tech background so I'd greatly appreciate if you laid out the framework you use to sift through data.
Thank you very much for your appreciation and for the suggestion. This one is not complicated at all but I'll queue a video on the same.
@@shankarnath thank you, that is much appreciated. 🙏
@@shankarnath +1 on the video request!
Wonderful presentation. It is some sort assurance on consistent alpha returns compared to typical nifty 50
More than 20% in mutual funds for long term..
Even most bluechip stocks also won't able to do it..
Excellent content sir.. TOP CLASS CONTENT
Thank you very much! Glad you found it informative & I hope you'll build upon it.
@@shankarnath I want to start it from next month 1st onwards.. thankyou sir
Very interesting presentation, @shankarnath . Wanted to check , in the worksheet, do the rolling returns pertain to the 50:50 momentum and value ? Or with the switch strategy?
Thank you! Yes, the rolling return is for the 50:50 split
@shankarnath momentum ibdex has grown 68% in 1 year. Almost 20% in 3 months, trigerring the switch. Do you think, its a good idea to switch from nifty 5p fund completely to a momentum fund. And then build momentum +value portfolio?
@torajneesharora I too have this question..now that nifty 50 looks weaker compared to major index like midcap , momentum, lv, value, etc
Great analysis sir .. Once again courage of conviction is required to invest during moments of crisis/black swan events
Shankar sir, been glued to your channel and particularly interested in and exploring the idea of investing in Momentum + Value. Was trying to play with the excel shared by you for closing Total return index values and to know which one is better at current market levels etc. Finding it difficult to find the data from nifty indices for closing TR index values for nifty 200 momentum 30 index. I only see price data available not the TR data. can you please possible guide how to get the TR data for 2023 ( as your sheet already has till Dec 22 so that i wont need ). Thanks in advance sir and Happy weekend.
Thank you very much for your kind appreciation Narender ji. For TRI, here are the steps after you access niftyindices.com :
1. On the top navbar, you'll see REPORTS
2. Within that sub-menu, click on HISTORICAL DATA. A new page will be rendered
3. In the top drop-down (orange color text), select "Total Returns Index Value"
3. Select Equity from next drop-down
4. Then the index you want data on (in your case it's Nifty 200 Momentum 30 or Nifty 500 Value 50)
5. Then the dates
6. Click Submit
Thank you very much sir! Will try this out today.
Thank you very much sir! It worked, I was missing step3 above, silly thing to have overlooked that filter completely somehow.
@@narendersachdev2480 No worries. Lots of people miss on that. The UI (using orange color) is terrible.
Those who are looking for Fund names, hit like ❤
1. UTI Nifty200 Momentum 30 Index Fund
2. UTI Nifty 500 Value 50 Index Fund
Good one. Nice simple looking strategies which retailer also can try.
Could you help to see the returns if momentum switch is used between Mom30 and a balance/debt fund instead of value index ?
@shankarnath Could you suggest gain analysis on possibility on buying nifty 50 index fund + hedging long term expiry index put option ?
Excellent..a unique concept!
Thank you!
Im a big fan of your quality content, also your video banners of you is funny, awesome... and graphics is engaging.
Thanks a ton! I'm glad you like them
Great video! Will you put Contra funds in the same category as value? If not why?
Thx. Personally, I wont use any actively managed fund as part of this strategy whether its contra or value. I explained my wrinkle with contra funds in the video on contrarian investing. Link: th-cam.com/video/EtuJa-TnSc4/w-d-xo.html
Sir do you have any training course for beginners??......I went through your videos and I feel it would be enormous to be your family❤
Not currently Vinod ji. Right now I'm very focussed on my newsletter and starting my community. Courses will be a part of the community access and also will be offered separately -- but this might take another 5-6 months. Sorry about that!
@@shankarnath Thank you sir. I am an engineer and I really want to learn the intricacies of the markets to get invested. Would you plz if possible make a video on where and how to start to study the financial markets in a proper manner plz??
M now 41 yrs old and have not invested other than in FDs yet.
@@vinodshinde9779 Thanks for the suggestion
Sir I'm stuck in choosing between two fund's flexy cap or opportunity fund I'm long term investor and also buy Growth stocks so according to me i should prefer flexy cap value fund like ppfas rather than picking opportunity fund as i myself already putting my money in value stocks please give ur thoughts on this