5Paisa Focused Alpha 5

Most diversified portfolios water down their best ideas. This card goes the other way. It runs the Nifty Alpha 50 (the 50 stocks in the broader Nifty universe with the highest alpha vs Nifty 500 over the trailing year) through a momentum filter and holds only the top 5 names. Every three weeks the screen re-runs and the portfolio rotates into whatever the model says is the strongest set of bets for the next cycle.

That structure is why the 5-year backtest produced a cumulative return of 842.55% against the Nifty 50's 59.62%. Same time period, same trading universe, very different concentration. Sharpe 1.60 says the volatility you took was paid for. Calmar 2.34 says the drawdowns you sat through were paid for too.

The portfolio swings hard. Annualised volatility 31.06%, more than double the Nifty's 14.04%. Worst week in five years was 10.30% down. The deepest drawdown ran 24.18% from peak before recovering. If you cannot watch a quarter of your stake disappear and stay invested, this is the wrong card on the lineup.

What you get for sitting through that: average winning week 3.50% versus the Nifty's 1.49%, average losing week 3.28% versus 1.57%. The asymmetry is what compounds. Win rate 62.45 percent, the second highest on the lineup.

The card buys only stocks priced under 10000. It rebalances every 3 weeks regardless of regime. It holds 5 names equal-weight. No fixed-income buffer. No gold sleeve. No defensive overlay. Pure momentum on a momentum-pre-screened universe.

Across the 5-year backtest the strategy rebalanced 88 times. The average gap between rebalances is 21 days, which lines up cleanly with the 3-week cadence. Names that have appeared multiple times across cycles include BSE, GVT&D, ADANIPOWER, MCX, HINDCOPPER, and APARINDS. The card does not have favourite stocks. It has a favourite signal.

This is not a starter portfolio. If this is your first systematic card, start with RupeeCase Nifty 10 and graduate to this one once you have lived through a real drawdown on a less aggressive product. This is also not a tax-friendly card if you trade it in a non-registered account. Three-week rebalances on 5 names mean churn, and churn means short-term capital gains.

Sensible sizing for most retail allocators is in the 5 to 15 percent of equity range, deployed as a satellite sleeve next to a diversified core (LargeCap Multi Asset, Allcap, or LargeCap Hybrid on this same lineup). 22045 is the floor.

CAGR 56.60% versus Nifty's 9.80%. Sharpe 1.60 versus 0.73. Sortino 1.65. Calmar 2.34. Max drawdown 24.18%. Volatility 31.06%. Best week 15.26%. Worst week 10.30%.