Buy on dips mutual fund strategy

[drsambu123]

Nice discussion in here

1% is a relative term and can be changed if markets take a clear down trend or so.
BTW i always have investible surplus! Good for me!
Also as i want to do this for long term, all market cycles will be covered. hence averaging it out.


I want to backtest this strategy but it seems quite tedious as i can't seem to get daily NAV easily. I want to see how many days average/ year when nifty goes down more than a %. and find their daily NAV. Than compare it with SIP of similar duration of same fund. Can anyone help?

@2021 Excel is very helpful. even I am non-tech related person still I use it frequently.
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Taxes can be saved, but only upto a certain extent. Nothing much for salaried persons

@drsambu123 right abt ETF. I specifically mentioned Gold ETF coz i want to invest in it for long term on averaging basis. btw we seem to have same profession.

Market will not show clear or 100% downward trend at all. U should be ready for both direction of nifty/ETF/MF movement. As our 2021 mentioned we should have our own strategy and should not change that very frequently. more importantly plan money management for that strategy. Only predictable thing in market is unpredictability. So we should understand our strategy and convinced in that clearly to follow it .

 

[drsambu123]

Hi,

Just thinking about a new (for me!) mutual fund strategy which can be used instead of SIP:

Everytime - nifty goes down by 1% buy mf units worth rs. 1000.

Invest in mutual fund for long time - 5+ years.

Alternatively, an excel file can be prepared of major holdings of the fund you are interested in. And 1% rule may be applied to sum of change in % of these scripts.

Time: Most fundhouses/brokerage have cut off time of 1pm/2pm to buy MF at today's NAV. so can place order before that time.
One simple strategy:
Try to start with X amount(10000) and have target growth rate(ex 15%). When nifty increases u need not buy any units. But if nifty increases more than 15 % in that year book that gain alone and put it in a liquid fund. Or if nifty goes down buy additional units to maintain 15% growth.. This is similar to Value investment plan(VIP).. Another type of VIP is offered in Funds India .com in which SIP model is taken. but monthly amount will vary according to market condition
http://www.fundsindia.com/content/jsp/corporate/latestnews1.jsp
I think this method can be most useful in midcap funds due to high variation in prices. Also, this can be applied to Gold ETF or any thing you like.

I want to backtest this strategy but too busy. Can anyone help?
Also, pls give your views on it....

One simple strategy:
Try to start with X amount(10000) and have target growth rate(ex 15%). When nifty increases u need not buy any units. But if nifty increases more than 15 % in that year book that gain alone and put it in a liquid fund. Or if nifty goes down buy additional units to maintain 15% growth.. This is similar to Value investment plan(VIP).. Another type of VIP is offered in Funds India .com in which SIP model is taken. but monthly amount will vary according to market condition
http://www.fundsindia.com/content/jsp/corporate/latestnews1.jsp