We have added two new trend-following strategies to our Mutual Fund MCP server. They track midcap and small cap indices.
Indian MF Tactical Midcap (
tactical-midcap)- Frequency: Daily
- Rule: Holds midcap equity when the NIFTY Midcap 150 TRI is above its 20-session SMA; otherwise holds an overnight fund.
- Benchmark: NIFTY Midcap 150 TRI
- Coverage: March 2017–October 2026
- Current allocation: Nippon India Overnight Fund — Direct Growth
Indian MF Tactical Smallcap (
tactical-smallcap)- Frequency: Daily
- Rule: Holds smallcap equity when the NIFTY Smallcap 250 TRI is above its 50-session SMA; otherwise holds an overnight fund.
- Benchmark: NIFTY Smallcap 250 TRI
- Coverage: April 2023–October 2026
- Current allocation: Nippon India Overnight Fund — Direct Growth
The same strategies are being currently run using ETFs: Tactical MIDCAP 150 and Tactical SMALLCAP 250. We ran a few scenarios on how their returns would look like under different brokerage slabs and if implemented through mutual funds.
Fun fact: because of the way mutual fund transactions work, you are better off not switching to overnight funds when the SMA exits equities. Cash works better because if there is a whipsaw the next day, you can get long fast.