How a Rules-based Portfolio works

Across Largecap, Midcap & Smallcap — what should you invest in, and when? We all know that each of them behaves very differently across market regimes. In terms of top performance over the last 21 years, largecaps led in some years, midcaps in others, and smallcaps in the rest. Being in the right market segment can therefore drive significant alpha.

Here, we try to answer this question using a rules-based, systematic approach. The strategy's demo portfolio generated a 5 year return of 18% CAGR vs 11% for Nifty 500 (as of May'26) It should be noted that this is a very simplistic approach — far from our complex and deep quant models & strategies. The purpose is just to demonstrate how a rules-based portfolio can work.

If you want to explore our quant-based strategies, check out SMART Portfolios.