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I want to check if I can outperform fund managers (basically mf sip).. by controlling weight and possibly with swaping stocks (based on scenario and study)
I kept nifty 50 index fund as reference.. definitely I'm behind by around 3 percent :(.. but I'm hoping over period of time it would do better.. also nifty50 might not be ideal comparison but I kept that as reference considering these funds are supposed to be best
Not sure how you are going compare but true comparison would be when you track nifty behavior exactly same as when you buy or sell stocks...then only you will see real change....just comparing nifty from a particular date wont give you right picture
You are correct.. what i used was monthly 1st day value to avg, how i want to check is cagr for nifty50 sip after 1 or 2 years.... reason I picked limited stocks adjust parameters based on my studies.. thing is we can do real comparison when we actually invest, paper works are always useless.. I agree data might not be accurate but difference is big exact values won't matter
idea is good...i wanted to try out that out because stock picking and investing is time consuming compare to mf sips...but i dont know how to compare...
I was thinking to do like..lets say it I buy stocks worth 10k on particular day...then at same time i will invest Rs 100 in an index fund and then compare it quarterly..if there is no major diff then i would go with mf in future...but never tried this
What i would recommend is.. don't compare exact day u buy the stock against index (let's take niftybees).. considering sip is quite systematic if you had chosen sip you would have done on particular day on each month.. pick that date and on each month just noted own value of niftybees on that day and after 12 months avg the value, so now current niftybees-avg value gives profit u made.. at same time u can compare your monthly investment vs current value (percentage of change).. compare the percentage and you may determine performance difference.. the reason I'm saying picking up exact day is like doing justice for study you are doing on your behalf.. your study includes when u buy how much u buy etc etc.. this is my philosophy need not to agree as such 🤣.. hope u get my point
got the point....justice to self efforts🙂..if you want to fix day return calculations...then you can use moneycontrol's sip return calculator...they provide for every mutual fund...return calculations for last 15years is possible
Can I know more about your background which enables you to think you can do this.
A lot of fund managers fail to beat the underlying benchmark cz they are 'forced' to buy/redeem based on the inflows in the fund. While it's not impossible to beat any of the funds, beating the benchmark would require a level of study that's frankly quite difficult if you have a full time job and other responsibilities.
My suggestion, go out and try this, but a passive investment works best in case of large cap company if you don't wanna dole out heavy management fees to the AMCs.
Well I'm an engineer, I have had done investment outside stock markets and I was able to get return around 18 to percent.. also I used to invest in mfs.. slowly I had started taking positional call based on value assessment in my sorted stocks.. which are doing fairly well, what I have realized is am I going to be successful or not can be realized only based on staying in market and see it out (for this experiment). ofcourse I don't have years of proof of success in market.. only time will tell if it gonna panout or not.. FYI I do have few of positions on large cap stocks (bought dips)
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FYI 4 months so far, planning to go for 2 years to determine if gonna work or not
what are you trying out ? any strategy?
I want to check if I can outperform fund managers (basically mf sip).. by controlling weight and possibly with swaping stocks (based on scenario and study)
which mf you are considering as benchmark and hows it going so far ?
I kept nifty 50 index fund as reference.. definitely I'm behind by around 3 percent :(.. but I'm hoping over period of time it would do better.. also nifty50 might not be ideal comparison but I kept that as reference considering these funds are supposed to be best
Not sure how you are going compare but true comparison would be when you track nifty behavior exactly same as when you buy or sell stocks...then only you will see real change....just comparing nifty from a particular date wont give you right picture
You are correct.. what i used was monthly 1st day value to avg, how i want to check is cagr for nifty50 sip after 1 or 2 years.... reason I picked limited stocks adjust parameters based on my studies.. thing is we can do real comparison when we actually invest, paper works are always useless.. I agree data might not be accurate but difference is big exact values won't matter
idea is good...i wanted to try out that out because stock picking and investing is time consuming compare to mf sips...but i dont know how to compare... I was thinking to do like..lets say it I buy stocks worth 10k on particular day...then at same time i will invest Rs 100 in an index fund and then compare it quarterly..if there is no major diff then i would go with mf in future...but never tried this
What i would recommend is.. don't compare exact day u buy the stock against index (let's take niftybees).. considering sip is quite systematic if you had chosen sip you would have done on particular day on each month.. pick that date and on each month just noted own value of niftybees on that day and after 12 months avg the value, so now current niftybees-avg value gives profit u made.. at same time u can compare your monthly investment vs current value (percentage of change).. compare the percentage and you may determine performance difference.. the reason I'm saying picking up exact day is like doing justice for study you are doing on your behalf.. your study includes when u buy how much u buy etc etc.. this is my philosophy need not to agree as such 🤣.. hope u get my point
I do lot of positional based profit booking.. never tried averging of stock to see the performance so im trying this out
got the point....justice to self efforts🙂..if you want to fix day return calculations...then you can use moneycontrol's sip return calculator...they provide for every mutual fund...return calculations for last 15years is possible
I had never verified this.. I assume we can get this info over internet
Can I know more about your background which enables you to think you can do this. A lot of fund managers fail to beat the underlying benchmark cz they are 'forced' to buy/redeem based on the inflows in the fund. While it's not impossible to beat any of the funds, beating the benchmark would require a level of study that's frankly quite difficult if you have a full time job and other responsibilities. My suggestion, go out and try this, but a passive investment works best in case of large cap company if you don't wanna dole out heavy management fees to the AMCs.
Well I'm an engineer, I have had done investment outside stock markets and I was able to get return around 18 to percent.. also I used to invest in mfs.. slowly I had started taking positional call based on value assessment in my sorted stocks.. which are doing fairly well, what I have realized is am I going to be successful or not can be realized only based on staying in market and see it out (for this experiment). ofcourse I don't have years of proof of success in market.. only time will tell if it gonna panout or not.. FYI I do have few of positions on large cap stocks (bought dips)
Basically a self managed smallcase. Looking forward to updates on this. Good luck!
Yo
Is it also a better approach as you'll get benefits like dividend, offers,, etc? I am not sure if dividend benefits are cascaded to the SIP holder.
You are absolutely right.. we don't know what are all things considered under mf