Hi,
I am running SIP in momentify strategy and I have seen a couple of issues in it:
- The SIP amount (Rs 20000 in my case) gets divided equally among all stocks which are in portfolio. If a stock's price is more than Rs 2000 then that stock is not picked and the SIP amount is not fully used. Ideally the left over SIP amount keeps getting added to new SIP installment and the whole amount should be available for investment.
- In case the rebalancing happens then the left over SIP amount and the amount received from selling outgoing stocks gets added and goes into buying new stock. This results in incoming stocks having much higher weightage as compared to pre-existing stocks. In this week's rebalancing, one stock went out and another came in which received all the amount which was left over from previous SIPs. The new stock is now nearly 25% of the portfolio.
Can these issues be addressed appropriately in SIPs at the earliest?
Regards
Abhishek
UCC: 1252955