GoalFi Momentum Trend Mid & Small Cap is a high-frequency, rule-based strategy that identifies the fastest-growing Mid & Small cap stocks based on momentum trends. Stocks that have outperformed recently tend to continue outperforming, and this model captures those trends.

📌 Why This Strategy Works?

✔ Momentum Factor Outperformance: Stocks rising fastest tend to continue rising, driven by investor sentiment and institutional flows.

✔ Strictly Rule-Based: No discretionary intervention - fully systematic.

✔ Short-Term Tactical Approach: Monthly rebalance ensures stocks in the portfolio remain in a strong momentum phase.

📌 Risk Considerations

⚠ High Turnover Risk: Monthly rule based rebalancing leads to frequent trades & transaction costs.

⚠ Momentum Reversals: Momentum stocks can decline sharply during market corrections.

⚠ Liquidity Risk: While most of the small-cap stocks are liquid, high trading volume can still impact execution prices.

✅ Best suited for momentum-focused investors who are comfortable with frequent portfolio adjustments.

🚫 Not suitable for passive investors or those seeking buy-and-hold strategies.