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POSTED BY ON February 12, 2013 9:38 am COMMENTS (13)
Is there any website that provide NAV alerts for Mutual Funds, I’m looking for 52 week lowest Nav alert.
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Dear Ramesh, that ‘mathematical’ thing was quoted to satisfy the hunger of dear Raj. At least using VIP/VTP ‘ll do good rather than not investing at all to wait for that 52 week low.
NO! ! ! 🙂
Thanks
Ashal
Just for information.
The VIP/VTP thing counter-intuitively performs worse than a basic SIP/STP, again mathematically speaking.
There is a third variation to the SIP called Momentum SIP/STP, which performs a little better than basic SIP/STP.
Compare these numbers, in a research using 20 years data, VIP outperformed 46% times as compared to 54% of basic SIP.
The momentum SIP outperformed 54% times as compared to 46% of basic SIP.
And Lumpsum outperformed around 70% as compared to 30% within those same periods.
Cheers. 😉
I believe, market timers are weak handed investors.
Dear Ramesh, I do know your views & support the same. Please read my reply only in the context of requirement of Raj. I’m also of the view that lump sum investment should be done if it’s for long term. The same thing I echoed in my prev. reply.
Hope I’m clear to you. 🙂
Thanks
Ashal
I know your views and I do think they are better suitable for most of the investors who come on this forum.
I do understand fads like VIP too.
My only contention was the term Mathematically Speaking. 😉
And if someone wants to check the reasons, they can do so by following those links.
Dear Raj, the more mathematical thing for your investing ‘ll be to use VIP or VTP.
Thanks
Ashal
Sorry Ashal,
Mathematically speaking, various research papers show that lumpsums win more often than SIPs, when you already have a lumpsum available. So, the SIP/STP or the more exotics VIP/VTP are mathematically speaking, losing strategies.
Of course, if you have a monthly stream of money, then SIP is the only option to invest for the defensive investor.
Emotionally speaking, I really do not care. Since emotional investors tend to have weak and shaky hands and will run at the first sight of underperformance of their funds or equities. 😉
Reference:
1. https://personal.vanguard.com/us/insights/article/dollar-cost-averaging-102012
2. http://www.moneychimp.com/features/dollar_cost.htm
3. https://pressroom.vanguard.com/nonindexed/7.23.2012_Dollar-cost_Averaging.pdf
4. http://thewealthsteward.com/2011/12/does-dollar-cost-averaging-boost-or-hinder-performance/
Just to borrow some eminent words:
The time in the market is more important than timing the market.
If you can time the markets well why time Mutual Funds you can rather time the stocks itself, right?! The problem is that timing is difficult.
I would recommend you do the regular SIPs all the time. On days that the markets fall by say more than 2% then do a lump sum on such days, aint that easy? There is no guarantee that a market falling 2% by 2:00 PM in a day will not recover by 3:30 but such qucik recoveries are far from few. But the cardinal rule: Keep investing in the market in good and bad days.
Dear Raj, what ‘ll you do if market does not perform as per your expectations & keep going on up wards from here on wards? “ll you not miss the bus altogether?
Time you remain invested is important. If you are going to in for next 20-25Y, the entry point does not make any difference. Yes a year or 2 not invested ‘ll impact your earnings.
If you are uncertain of market levels, please use debt fund – STP – Eq. fund route to invest systemaitcally.
Tnhanks
Ashal
follow the common STP practice of moving from Cash / debt to equity or vice versa.
I have some money set aside for lump-sum investment currently invested in debt funds. Though I am not trying to time the market, just curious to know when will be the best time to move these funds into equity instruments. What advantage am I going to have if I invest lump-sum amount in MF with long term projections when Sensex is floating around 21K?
I thought its good idea to set aside some amount to invest lump-sum in funds with great fundamentals when markets are low.
On a side note this amount is not part of any goal based investment which is already taken care by SIP and STPs.
If you are looking at sensex levels for investing, then you are timing the markets. As simple as that.
If I were you, I would just put that money into my fund of choice, whether there is an ongoing SIP in that or not. If it is something which I do not need for next 5 years, I would put into equity otherwise, debt. Simple.
Dear Raj, Let’s assume fund X is quoting around 100 Rs. NAV as on date. 52 week lowest NAV was 65 & the same is hit by next 2-3 months. The alert you are asking for is generated. Now do tell me, what do you want to achieve from this alert?
Thanks
Ashal
What possible benefit can this have? I would like to understand the rationale.
Say, you got a site which shows that. Then what?