Buy on dips

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drsambu123

Active Member
#51
#51
What a fall? Nice to see the fall... Its great oppurtunity for all to invest for long term.... I am gearing up for my next additional purchase... As i told u already, Iam purchasing additional units in tax shaving and large cap based fund to meet my asset allocation... I can buy upto 15000 sensex from by debt amount. beyond that i have to do alternate arrangements(certainly not barrowing) if market goes down further
 
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2021

Active Member
#54
#54
Current PE is 18.76. However situation is very gloomy for IT, Textiles and FMCG now as US will cut expenses and these 3 will suffer most. It's not time to buy everything in 2-3 installments or falls. Now a bear phase is starting for long term and hence instead of 100 points fall one should be seeing PE closely and every 35 basis points dip in PE means a fresh investment. Funds to look out for should be Index funds and FoF which carry less expense ratio as now one will buy for longer term appriciation and not sell on rise and buy on dips. HDFC Sensex Plus, IDFC Nifty, SBI Bluechip, Kotak FoF, Quantum Equity Fund of Funds etc which either have low exp ratio or don't carry exit load. Have deep pockets and be ready to see Nifty at levels not expected by anyone, 3000 or 6500!
 
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drsambu123

Active Member
#55
#55
Certainly I am not suggesting to buy for every 100 points of sensex correction. I am doing it for every 700-1000 points. My next additional purchase would be around 16500-16750 sensex. Till that time i will continue my SIP...
What is 35 basis point dip in sensex? Pl explain
 
D

drsambu123

Active Member
#56
#56
US downgraded- Impact on Indian market
The decision by S&P, the global ratings major, to cut USs sovereign rating by a notch to AA plus from AAA is something that has no precedence. So for foreign fund managers as well as institutional dealers in India, this is something they dont understand and hardly anyone has a definite clue how to react to it. As a result, brokers are certain there could be some knee-jerk reaction and selling after Mondays opening bell.... lets see what happens on monday
 
2

2021

Active Member
#58
#58
drsambu123 said:
Certainly I am not suggesting to buy for every 100 points of sensex correction. I am doing it for every 700-1000 points. My next additional purchase would be around 16500-16750 sensex. Till that time i will continue my SIP...
What is 35 basis point dip in sensex? Pl explain
Click to expand...
35 basis not in sensex but in NSE PE http://www.nseindia.com/content/indices/ind_pepbyield.htm which means a fall of .35 from current PE and so on.

If 1 buy on 600-700 correction than they'll not make money. 2 reasons - market don't run on our decision i.e. if we decide market will fall 600-700 points thats almost 4-5%, it'll never happen. Market gives surprises. It may go down to 16000 but before that it'll surely see 18000. So 1 have to be a buyer on dips. And 2ndly, if 1 is investing 10000 at 100 NAV and market falls 5%, his NAV becomes (assume) 95. For 10000 person got 100 units at 100 NAV. Now if market again falls 5% than a 10000 investment will fetch 111 units. Now total units are 211 and NAV price is 90, current value becomes 18990 and loss of almost 1000 or 5%. So where is buy on dips? Therefore every small dip should be bought and every rise should be sell plus one should have deep pockets to cover 5% falls.
 
D

drsambu123

Active Member
#59
#59
2021 said:
35 basis not in sensex but in NSE PE http://www.nseindia.com/content/indices/ind_pepbyield.htm which means a fall of .35 from current PE and so on.

If 1 buy on 600-700 correction than they'll not make money. 2 reasons - market don't run on our decision i.e. if we decide market will fall 600-700 points thats almost 4-5%, it'll never happen. Market gives surprises. It may go down to 16000 but before that it'll surely see 18000. So 1 have to be a buyer on dips. And 2ndly, if 1 is investing 10000 at 100 NAV and market falls 5%, his NAV becomes (assume) 95. For 10000 person got 100 units at 100 NAV. Now if market again falls 5% than a 10000 investment will fetch 111 units. Now total units are 211 and NAV price is 90, current value becomes 18990 and loss of almost 1000 or 5%. So where is buy on dips? Therefore every small dip should be bought and every rise should be sell plus one should have deep pockets to cover 5% falls.
Click to expand...
yes i know market dont run on our decision.It may fall or may not fall But we cant say it will never happen. Your strategy is like trading short term. Mine is different different.. Regular SIp+ Buy on dips+ skip the SIP on ups...
Whenever significant fall i will buy additionally... Whenever significant raise i will skip the SIP and replenish the debt pool.. So ultimately to get better cost average than simple regular SIPs... profit booking is considered only when my goal is near or very high raise in market....
 
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