Long term wealth creation with minimum intervention

[vivektrader]

I gather that the topic wasn't very interesting for the members, but believe me this thread came up after lot of struggle to chalk out a simple pathway for longterm wealth creation which can be emulated by anyone. Remember in stock market boring will make wealth, exciting wont create anything lasting and meaningful.....
Goodluck
Happy Investing

 

[timepass]

Most difficult part is to make a decision and act on it, and after that follow the plan and keep conviction. That is all, no complications.

Yes, decision making is the most difficult part.

That's why I chose to go for all the NFOs. I don't go for those that involve a demat account. Work directly with the MF website or MFcentral. It also gives me a basket of a variety of sectors / types of MFs.

I prefer to keep the money in liquid or debt funds, and switch them to the NFO.

 

[timepass]

Can you apply Demark or the technical indicators to the MFs ? Is it possible with the Index funds ?

There is only one price so one has to consider open=high=low=close.

 

[vivektrader]

Can you apply Demark or the technical indicators to the MFs ? Is it possible with the Index funds ?

There is only one price so one has to consider open=high=low=close.

Yes, can apply Sequential to underlying index on which the mutual fund is based, per se the charts of mutual funds are not of much use. For example if you have smallcap fund, use sequential on smallcap index, similarly midcap indices, and also sectoral indices. One can not use Nifty Midcap150 Momentum50 index chart if one is into that fund, use midcap150 index chart instead.
Another way to time is, buy when weekly stochastic on an index is in oversold region, need to be careful with sectoral indices as some may be in secular downtrend. But index like FMCG is evergreen, use any method in correction to time the buy. It has beaten Nifty throughout its lifetime (returns are just above 15%)

 

[vivektrader]

 

[vivektrader]

Above is a weekly chart of FMCG index, below pane is weekly stochastic 14,3,3 settings (default), on the price chart black line depicts 10% drop from ATH, green line 5% drop (Blue is Current ATH, ignore that), buy the ETF of FMCG simply when index goes to weekly oversold or simply predefined correction percentages 5/10 or 15% from top. Buying in correction (and adding) will easily push longterm returns from 15% (of FMCG sector) to over 20%. Call it Stochastic investment plan, the better SIP
It doesn't get simpler than this........but it is effective.

 

[timepass]

I have a bias against the demat ETFs.

 

[timepass]

I am sure that Nifty Midcap 150 momentum 50 index is an outperformer historically, but I don't see any funds based on that index among the toppers.

https://money.rediff.com/mutual-funds/top

On the other hand, I see BSE Enhanced Value index fund doing great recently. But it doesn't have much history.

Also, can you please compare this midcap index against the Nifty Next 50 index ?

 

[vivektrader]

I am sure that Nifty Midcap 150 momentum 50 index is an outperformer historically, but I don't see any funds based on that index among the toppers.

https://money.rediff.com/mutual-funds/top

On the other hand, I see BSE Enhanced Value index fund doing great recently. But it doesn't have much history.

Also, can you please compare this midcap index against the Nifty Next 50 index ?

There are two funds one by Tata another by Edelweiss

 

[timepass]

There are two funds one by Tata another by Edelweiss

Right. But Tata is a young fund, only about 2 years old, where a lot of funds must've given this much CAGR, and the nifty index too.

It's the same with Edelweiss

Compare with the Enhanced Value Index Fund

Compare with the ELSS or Retirement or Balanced Advantage or Multi/Dynamic Asset Allocation funds.

You will hardly find any 15 year old funds which have given 20-22% returns over this term.

Hence I think that even if you apply for the NFOs, average on the way down. This will increase the CAGR. If 10rs. becomes 40, it is far less than 9.8 becoming 40.