SIP Strategy

Hi Shabbir Bhai

With respect to mutual funds, instead of starting a SIP, can we follow below strategy ?

1) Create a dummy portfolio in a website like moneycontrol with top 25 stocks of the selected MF(Say Motilal Focused Multicap 35)
2) Observe the portfolio around 15 mins before cut off time(say around 2.30 - 3 pm) on a daily basis.
3) If we understand that the NAV may go down at least by .50 % on that day, Invest around 30-40 % of the monthly planned SIP in selected MF

In the above strategy, if monthly planned amount is say 5k, we can invest around 2k 3-4 times in a month when market is down and may be only once in a month where market is rising continuously.

Please let me know your opinion.

 

Should be worth a try.

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Unless and until if you place the order directly with the concerned mutual fund you may get it at the price you want, if you place the order through agent or brokers, you will not know at what price you will be getting it.

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The cutoff time is mid day for majority of the funds and so if you can punch in your order within the time limits, you can make a difference of 0.5% price movement for that given day. More important will be to evaluate the performance and save on expense ratio and other params than doing this.

 

This is so wonderful analysis Shabbir. Thanks for sharing.

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Thank you all

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