Hello Rama yes my skeletal mesh has a physics asset. The collision is set on the constructor (i forgot to put it on the code) where i assign a projectile collision profile that blocks everything if im not mistaken. I confirmed on the blueprint that derive from that class that the collision profile is active.
I created a new blueprint with just the skeletal mesh and simulated physics with collision as BlockAll and it fell to the floor and collided properly, so the skeletal mesh is fine. I added a BoxComponent to the projectile like you suggested and set it up as the UpdateComponent of the Projectile Movement Component and it’s working fine, so i guess the physics assets might be too heavy operation to do on fast moving objects, but i would like to have an confirmation from Epic about this, just to make sure if there is no other way.