Performance of NIFTY for the month of June, 2011 5,700.00 5,600.00 5,500.00 5,400.00 5,300.00 5,200.00 5,100.00 5,000.00
Performance of MNGF for the month of June, 2011 1080.00 1070.00 1060.00 1050.00 1040.00 1030.00 1020.00 1010.00
*Note: Graph was plotted with closing figures
Monthly returns comparison Instrument Nifty Index MNGF Index
Jun-11 0.99% 4.41%
Strategy used by MNGF Based on fundamental and technical analysis, a basket of equities from nearly all sectors were created, which was evaluated every week. Based on our strict criteria, some equities made to the index whereas some others were dropped. We never rushed to buy overbought stocks or sell oversold stocks, in short never paid attention to public news. We clubbed our portfolio with options. Most of the times we sold options (clubbed with buying of some options ) to get some extra premium on our long position. Initially it gave good profit but too much volatility disturbed our profit margins, of course we can’t always expect market to behave the way we think. Thinking market neutral always helped us, this time too Charts helped us identify some important patterns; here we chose not to go offensive but rather became highly defensive. We chose not to erode our capital instead of choosing to ride the bull. Last 3 days gave good returns, mostly when our stocks jumped high with NIFTY. Also, approaching expiry gave good premium returns with short options