Why Kredent InfoEdge’s Vivek Bajaj chooses momentum investing

Bajaj began as a commodity analyst with JM Financial, however give up quickly after to turn into a full-time dealer. He has traded not solely in equities but additionally in commodities and currencies. His firm iRageCapital, launched in 2009, was among the many preliminary corporations that launched algo buying and selling in India. At current, Kredent InfoEdge has three enterprise streams — StockEdge, Elearnmarkets and StockEdge Club.

“We have created an ecosystem which may function an investor’s full journey—from studying (by means of elearnmarkets), analysis and knowledge analytics (by means of StockEdge), collaboration (by means of StockEdge Social), and now transaction as effectively. Investors can entry their demat accounts by means of our StockEdge platform,” he told Mint.

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Overall, 4 million users have interacted with Kredent InfoEdge across the three businesses, according to Bajaj. And of them, 150,000 users have opted for paid services. The company had reported ₹22 crore revenue in FY22 compared to ₹14 crore in FY21.

Bajaj hardly does any trading now. “Between 2006 and 2013, I was extremely active in trading—from morning to midnight. Later, I moved to passive trading. Subconsciously, I keep tracking the markets the full day though I am not an active intraday trader anymore,” says Bajaj.

Passive buying and selling is about holding positions for mid-to-long-term swings and never taking part in small actions out there. “My goal is often to get 10-25% actions in a inventory,” he says.

Momentum versus Core

Bajaj has been “super bullish” on equities. His investments comprise a core portfolio linked to worth and progress investing and a momentum portfolio, additionally known as satellite tv for pc portfolio. “I am going aggressive on momentum buying and selling when the market is on an uptrend, that’s when the Nifty is buying and selling above 200-DMA (Day Moving Average),” says Bajaj. The share in momentum portfolio goes up to 70% at such times, while the rest 30% comprises the core portfolio of quality stocks in which Bajaj has systematic investment plans (SIPs). He books profits from its momentum portfolio and sits on cash when the market is on a downtrend. About 30% of his overall portfolio is cash in the current market scenario.

Bajaj’s equity portfolio also comprises mutual funds (MFs). This could be Nifty index funds or exchange traded funds (ETFs), which he believes are the best products in the MF industry. “About 15-20% of my equity portfolio is into MFs, which is part of my core portfolio,” he says.

Bajaj has diversified his investments throughout equities (30%), debt (10%), gold (10%), actual property (20%) and money (30%). Had it been a momentum market, the 30% money would have been deployed in equities as effectively. “Momentum will come to image solely after I can spot momentum market traits. So, I’m sitting on a whole lot of money proper now.”

Bajaj’s fairness portfolio has remained flat within the final one 12 months with a compounded annual progress price of 20%.

Like many Indian households, Bajaj holds an excellent quantity of bodily gold. He additionally accumulates some paper gold frequently.

But these aren’t gold ETFs, gold mutual funds and even sovereign gold bonds. “We are a member of Multi Commodity Exchange (MCX). So, I take MCX contracts to take place in gold. This helps me earn higher return on capital as a result of I don’t need to pay upfront. The upfront capital deployment is much less thanks to simply 15% margin requirement.”

This, however, is a sophisticated strategy that most retail investors should not attempt to implement. Bajaj has been doing this for the last 4-5 years on a weekly basis. The current prices are 20-25% higher than his average buying cost. However, his gold investment has generated a CAGR of 4-5%. “For me, gold is more of a hedge than investment.”

As for debt, he solely prefers liquid funds. “For me, debt funds are solely to park cash for the short-term. I want money to deploy out there. I don’t take rate of interest dangers by investing in debt funds.”

Whatever real estate he has is for his own use. “My residence and office is my real estate. I don’t see it as an investment option.”

Does Bajaj do goal-based planning? “I do have psychological mapping of economic targets lined up, however I’ve reached a state the place I don’t need to do it on an excel sheet or another doc,” he says.

Bajaj has a huge following on social media platforms YouTube, LinkedIn and Twitter. He started face-to-face interviews with market mavens in 2016 for elearnmarkets. He started a second channel in November 2020. Both these are quite popular and have 800,000 and 600,000 subscribers, respectively. Yet, the one thing that is not going well for Bajaj is the subscription business. “The revenues from subscriptions have not been enough. I see it happening only if the subscription economy picks pace in India,” he says.

He holds a analysis analyst licence underneath StockEdge however plans to use for an RIA (registered funding advisor) licence in order that he can provide portfolio-level recommendation to buyers.

Bajaj has a message for merchants who look as much as him for recommendation: “Don’t be in a rush. Trading is one occupation which might be accomplished until your final breath. The most vital factor is to maintain out there.”

Though he stays away from the monetary capital, Bajaj says he’s not taken with shifting to Mumbai. He’s glad interacting with Dalal Street from the consolation of his house—the City of Joy, Kolkata.

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