Last monthwas challenging for high beta stocks
especially smallcaps & metals.
This obviously led to underperformance for our smallcaps
portfolio and volatility in momentum & multi-factor
portfolios that have metals and midcap exposure.
The reason for this volatility was the expectation of
tapering in the FED August meeting. Fortunately, the
taper did not happen. As a result, we are seeing an end
to the short-term correction and recovering the
portfolio performances.
In light of this, low volatility stocks like SRF, DMart
Mindtree, and HDFC Bank are added to the multifactor
portfolios in this month's rebalance. Likewise, in
Momentum, Navin Fluorine, Mindtree, Infosys, Tata steel
have been added. More details are there in the
rebalancing email.
So the new allocation looks like this:
How to rebalance your portfolio to save costs!
Because we rebalance our smallcase portfolio a day
before the actual rebalance goes out, sometimes
orders are generated for stocks for which we
actually did not intend to generate trades. This is
because of price fluctuations, and this causes
unnecessary transaction costs.
Know how you can customize your rebalance update to
reduce these unnecessary costs.
Sonam Srivastava | Sept. 1, 2021
smallcase
Vested