Buy on dips
- Thread starter drsambu123
- Start date
No time is bad when you buy quality stock or fund. I found an old account statement from camsonline a few days ago when I was searching old electricity bills for load revision and was shocked to see the returns I could have got if I had not sold those funds during 2009 panic. IDFC Imperial bought from 8 to 10, hdfc 200 at around 90s, ICICI Discovery at 17.. All at current year lows hold double the return 2009 price! Even in FD we get double returns in 7 years and when markets are at turmoil old funds I had are twice now. I regret selling that time.
Now my porfolio reads 4-5% down, a loss of some 3500 on 85k investments.. biggest loss coming from Birla Top 100. I'm done with making porfolio and now have BSL 100, HDFC Sensex plus, SBI Multiplier, HDFC 200, ICICI Discovery, HDFC Midcap and DSP Micro making 2 each for large, mid, multi and 1 for small cap. Bearing 6-7% loss in Reliance diversified power I was reluctant to buy sector funds but today I started an SIP of Franklin IT and Sundaram Financials. I will keep buying at dips and won't give up how-what-so-ever market can test my patience. I'll buy and buy more. 500 or 1000 or 2000 may it be small amount I'm putting now but I'm confident that in coming days my portfolio will multiply with compounding returns.
Now my porfolio reads 4-5% down, a loss of some 3500 on 85k investments.. biggest loss coming from Birla Top 100. I'm done with making porfolio and now have BSL 100, HDFC Sensex plus, SBI Multiplier, HDFC 200, ICICI Discovery, HDFC Midcap and DSP Micro making 2 each for large, mid, multi and 1 for small cap. Bearing 6-7% loss in Reliance diversified power I was reluctant to buy sector funds but today I started an SIP of Franklin IT and Sundaram Financials. I will keep buying at dips and won't give up how-what-so-ever market can test my patience. I'll buy and buy more. 500 or 1000 or 2000 may it be small amount I'm putting now but I'm confident that in coming days my portfolio will multiply with compounding returns.
Exerpt from Anand Tandon -CNBC interview
The risk for the investor is and thats what keeping a lot of people away that after they buy stocks might fall much more from their purchase prices. How high is the probability or the risk of that?
Tandon: When you say "much more" I would think that the probability is not that high. Can it fall from here? Almost definitely it can and as I said unfortunately most people are trend followers. Given that the trend has broken on the downside you will find that lower bottoms can be made.
From the point of view of trying to catch a turning point, I would argue that you are now at level where every downside, as I said if you get another 200-300 points of the Nifty, you should go out and put some serious asset allocation shifts back into equities not with the intention of making money over the next three-six months, but certainly, over one-two years timeframe you will get significantly more than debt. It has been the challenge for the last two years.
If you look at the last two years, almost from the time that this government came into power, you would have been better off putting money into debt, which is something that the market didnt seem to realize then and I am saying that form now on a 300 point drop will give you better on debt returns in spite of the fact that rates of interest are much higher.
The risk for the investor is and thats what keeping a lot of people away that after they buy stocks might fall much more from their purchase prices. How high is the probability or the risk of that?
Tandon: When you say "much more" I would think that the probability is not that high. Can it fall from here? Almost definitely it can and as I said unfortunately most people are trend followers. Given that the trend has broken on the downside you will find that lower bottoms can be made.
From the point of view of trying to catch a turning point, I would argue that you are now at level where every downside, as I said if you get another 200-300 points of the Nifty, you should go out and put some serious asset allocation shifts back into equities not with the intention of making money over the next three-six months, but certainly, over one-two years timeframe you will get significantly more than debt. It has been the challenge for the last two years.
If you look at the last two years, almost from the time that this government came into power, you would have been better off putting money into debt, which is something that the market didnt seem to realize then and I am saying that form now on a 300 point drop will give you better on debt returns in spite of the fact that rates of interest are much higher.
Those who keep cool head, its advantagoeus time to invest
Article from VRO
http://www.valueresearchonline.com/story/h2_storyview.asp?str=17827
Article from VRO
http://www.valueresearchonline.com/story/h2_storyview.asp?str=17827
hi friends,
i've heard about the "buy on dips" mostly from the tv channel community.
I have a query on the same.
Suppose a script 'X' is on a continuous uptrend (as indicated on the weekly charts and daily charts) and and falls on a day by around 3-4% (may be due to profit booking or market correction).
does "buy on dips" advocate tat we buy on the same day ?
or should we wait for that scrip to rise again on next 1 or 2 days?
i've heard about the "buy on dips" mostly from the tv channel community.
I have a query on the same.
Suppose a script 'X' is on a continuous uptrend (as indicated on the weekly charts and daily charts) and and falls on a day by around 3-4% (may be due to profit booking or market correction).
does "buy on dips" advocate tat we buy on the same day ?
or should we wait for that scrip to rise again on next 1 or 2 days?
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