POSTED BY May 29, 2011 10:59 pm COMMENTS (2)ON
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.
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….