Momentum Trend - Select Quality All Cap Model
GoalFi
A discretionary factor strategy selecting high-momentum, high-quality stocks from Nifty 750.
1Y CAGR
32.37%
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Daily Change
Today's change in this smallcase is
7Y CAGR
CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of launch. Only live data is considered to calculate the CAGR. Thus, this smallcase has given returns on an average every year since Apr 4, 2016
High Volatility
Stock prices move up and down on a daily basis, resulting in fluctuating investment value. High volatility indicates high fluctuation is expected in the investment made in this smallcase
About the smallcase
Momentum Trend - Quality Select All Cap Model captures stocks with strong price momentum while ensuring financial stability. By selecting high-momentum outperformers with quality fundamentals, this strategy balances growth potential with risk control.
📌 Factor-Based Selection: Momentum & Quality
✔ Momentum Focus → Stocks are selected based on rolling excess returns over their benchmark, ensuring exposure to market leaders.
✔ Quality Filter → Ensures only high-profitability, low-leverage, and stable-earnings-growth stocks qualify.
✔ Factor-Weighted Allocation → Higher weight for stronger factor scores, capped at 20% per stock.
📌 Discretionary Rebalancing & Risk Management
✔ Reviewed monthly but rebalanced only when necessary based on market conditions, factor behavior, and qualitative insights.
✔ Market Trend Monitoring → Adjusts exposure dynamically to optimize performance.
✔ Defensive Allocation → In extreme volatility, may reduce exposure to high-risk stocks or allocate to LiquidBees instead of weaker stocks.
📌 Investment Horizon & Risks
✅ Best for 3+ years, targeting momentum-driven growth with quality-backed risk control.
⚠ Market Risk – Exposure to macroeconomic conditions and volatility.
⚠ Factor Risk – Momentum may underperform in market reversals.
⚠ Liquidity Risk – Mid/small caps may have higher volatility.
⚠ Rebalance Risk – Need-based adjustments may lag in fast-moving markets.
Methodology
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Methodology
universe
The Momentum Trend – Select Quality All Cap Model selects stocks from Nifty 750, ensuring diversified exposure across large, mid, and small-cap stocks.
Large-cap stocks provide stability and institutional participation.
Mid-cap stocks offer a balance of growth and liquidity.
Small-cap stocks have high upside potential but increased volatility.
This universe allows the model to identify high-momentum, high-quality stocks across the entire market, ensuring flexibility in stock selection.
research
The portfolio follows a multi-factor selection process, incorporating:
✅ Momentum Factor:
Stocks ranked based on rolling excess returns over their benchmark.
Higher momentum stocks indicate sustained buying interest and strong price trends.
✅ Quality Factor:
High profitability (ROE, ROCE, or operating margins).
Low leverage (debt-to-equity ratio) to ensure financial stability.
Low earnings growth variability to filter out volatile profit trends.
This combination ensures the strategy captures market-leading stocks with sustainable growth characteristics.
(Discretionary & Need-Based)
Reviewed monthly, with no forced rebalancing—adjustments occur only when necessary.
Human oversight ensures adaptability, allowing the model to respond dynamically to factor behavior & market conditions.
During heightened volatility or trend reversals, the model may shift allocations to GoldBees or LiquidBees instead of holding weaker stocks.
stockScreening
The portfolio selects a variable number of stocks based on factor screening results.
No fixed stock count—only stocks meeting Momentum & Quality criteria are included.
If fewer stocks qualify, remaining allocation moves to LiquidBees or GoldBees for capital preservation.
No discretionary stock selection—only factor-driven, rule-based screening.
weighting
Factor-weighted allocation → Stocks with higher Momentum & Quality scores receive larger weights.
Single stock exposure is capped at 20% to prevent over-concentration.
No market-cap bias—allocation is based purely on factor rankings.
This ensures optimal exposure to the strongest factor-driven stocks while maintaining diversification
rebalance
This smallcase has a monthly rebalance schedule. Once every month, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next month
About the Manager
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