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Study - 5 year Stock SIP in Infosys stock

Discussion in 'Investment Analysis' started by ganesh_devkar, Sep 16, 2016.

  1. ganesh_devkar

    ganesh_devkar Member

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    Hi,

    Presenting a study I did out of curiosity, this study is based on following assumptions:

    1. SIP Started from 19th September 2011, of 5000/- per month
    2. Kept on buying shares on approx. same date of the month
    3. Took the closing price of the stock on that day
    4. The period is from 19-9-2011 to 19-8-2016 (5 yrs)

    Got following result from the study -
    No. of Shares Accumulated - 371
    Current Value(Rs.) - 3,87,193
    Capital Invested(Rs.) - 3,00,000
    Gain(Rs.) - 87,193
    Return - 10.1%

    If we select good stock basket (prerefably Blue Chip) then we are sure of getting good returns (at least more than bank deposits) through Stock SIP.

    Would like to know your thoughts on this approach.

    Regards,
    Ganesh
     
    ganesh_devkar, Sep 16, 2016
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  2. caringvij

    caringvij Active Member

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    Thanks for the great insight. If we do sip directly in stocks instead of mutual fund which one will give more returns? For example you take one fund say Icici Pru value discovery same portfolio we do in direct stock investment may be instead of sip we can buy on dips every month which one is profitable?
     
    caringvij, Sep 16, 2016
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  3. ganesh_devkar

    ganesh_devkar Member

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    Investing regularly in stock instead of mutual funds will always give you better returns, provided:

    1. You watch your stocks and related news actively
    2. Take decisions on churning of stocks on the basis of analysis.

    But mutual fund gives you freedom from above activities, so best to invest in mutual fund for small/mid cap stocks and stock SIP for large cap/blue chip stocks with limited diversification.

    Regards,
    Ganesh
     
    ganesh_devkar, Sep 16, 2016
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  4. shabbir

    shabbir Administrator Staff Member

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    Automated Stock SIP is never a good idea but yes the approach to make this calculation is good and it will always be better to be accumulating the stocks.

    The only problem is when people invest in market, they are never satisfied with 10% CAR or compounded annualized return.

    Ideally for stock SIP, invest in the stock in months when you see significant dips in that month and you will see your returns improve handsomely. Instead of just adding the stock on any particular day just try to invest on a day when it had a big dip or the next day just after a big dip in a month. See what your returns are and they will be awesome.
     
    shabbir, Sep 16, 2016
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  5. ganesh_devkar

    ganesh_devkar Member

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    That's good idea to invest on dips.... This brings me to another question....how to select good blue chip stocks for long term investing?
    In 'Intelligent Investor' book I read that one of the parameters is to see the last 10 yrs of dividend paid by company.

    What else should we look for in a good blue chip stock?

    Regards,
    Ganesh
     
    ganesh_devkar, Sep 16, 2016
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  6. shabbir

    shabbir Administrator Staff Member

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    Dividend is never a good estimate to know companies good or not because lot of PSU pays very high dividend.

    Yes a dividend paying company does mean they are not cash crunch. I prefer to look at the following http://shabbir.in/fundamental-analysis/ for investing in any company and it really works well for me.
     
    shabbir, Sep 16, 2016
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  7. ganesh_devkar

    ganesh_devkar Member

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    Thanks. Will go through this section.

    Regards,
    Ganesh

    Sent from my A0001 using DIY Technical Analysis mobile app
     
    ganesh_devkar, Sep 16, 2016
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  8. ganesh_devkar

    ganesh_devkar Member

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    Hi Shabbir,

    Read your blog about Fundamental Analysis, got to know real good things about long term investeing. Thank you.

    Regards,
    Ganesh
     
    ganesh_devkar, Sep 16, 2016
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  9. nirajshah

    nirajshah Champion

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    There is always something new when we read his blog.

    Sent from my 504Q+ using DIY Technical Analysis mobile app
     
    nirajshah, Sep 16, 2016
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  10. shabbir

    shabbir Administrator Staff Member

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    Glad you like it and don't forget to share it on social media with your friends.
     
    shabbir, Sep 17, 2016
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  11. Suresh_Sinha

    Suresh_Sinha Active Member

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    Awesome share. All I can say is priceless.
     
    Suresh_Sinha, Sep 18, 2016
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  12. sudheerpal2

    sudheerpal2 New Member

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    Suggest some bluechip stock SIP ( accumulating @ their dips)
     
    sudheerpal2, Oct 27, 2016
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  13. shabbir

    shabbir Administrator Staff Member

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    For long term I would prefer have these in my portfolio.
    • Asian Paints
    • Marico
    • Jubilant Foodworks
    • Britannia
    • Zydus Wellness
    • Jubilant LifeScience
    • Pidilite
     
    shabbir, Oct 28, 2016
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  14. rrjain319

    rrjain319 Member

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    Hello,

    I am new to chart and still learning, I have taken an example of Marico to learn how to read chart

    I tried to find out EMA of Marico for 50, 100, 200

    50 --> 263.43
    100 --> 253.32
    200 --> 252.55

    looking at the chart i feel the 1st support level is 243.15

    How to find out what is the good price to enter in this stock..

    upload_2016-10-28_9-47-0.png

    Thanks and Regards,
    RJ
     
    rrjain319, Oct 28, 2016
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  15. shabbir

    shabbir Administrator Staff Member

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    You have chosen a stock which hardly comes down and so it is not the right chart to look.
     
    shabbir, Oct 28, 2016
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