SIP in Stocks

#1
Hii all , i had a question in my head for a long time and was trying to get answer from here and there but no luck... so i finally decided to put up my question up here:-- like sip in mutual funds if we do sip in stocks directly like putting a fixed amount say 5000 on first monday of every month for a period of 5, 10 or may be 15 years in some stock say ACC or SBI, what would happen, what r the possible outcome, would this be profitable, how to backtest for the above said time span... i think this is possible and should be more profitable than sip in mutual fund's as here there r no entry or exit loads and no fee to be paid to MF manager's etc...can some one through some light am waiting eagerly....:)
 
#3
Interesting thought...though this wouldnt be sure fire technique per Technical Analysis...

Worth a thought..may be as Warren Buffet style...as long as ROE stays above 20% and basic FA parameters remains good...

May be add in 1 time, 2 times , 3 times and 4 times ratios for every fall of 5-8% on bad days...hold for long time and keep booking profit on high days..
 

bandlab2

Well-Known Member
#4
Hii all , i had a question in my head for a long time and was trying to get answer from here and there but no luck... so i finally decided to put up my question up here:-- like sip in mutual funds if we do sip in stocks directly like putting a fixed amount say 5000 on first monday of every month for a period of 5, 10 or may be 15 years in some stock say ACC or SBI, what would happen, what r the possible outcome, would this be profitable, how to backtest for the above said time span... i think this is possible and should be more profitable than sip in mutual fund's as here there r no entry or exit loads and no fee to be paid to MF manager's etc...can some one through some light am waiting eagerly....:)

prpblem is with fractions. in india you cant by 2.5 stocks, you need to by 2 or 3 stocks. all index stocks are high valued, or 5k you cant get whole numbers.

if you have 20000 rs per month, buy a mix of reliane, sbi, l&t, tata steel. you may need to buy nearest roun figure

if you buy this on first working day of the month or 10-15 years, yi will get good returns. you may beat most of diversified MF. Take profits periodically
 
#5
thank u all for ur precious replies, 5000 was taken as example 20,000 or 25,000 is a reasonable amount, but for many this amount might not be possible as we r talking SIP month after month, i think there r many good stocks available at rates where 5000 can fit. and yes u r right about round of fig. if the amount of shares comes to 2.4 we can buy 2 or if it comes to 2.7 we can buy 3, one of my question still stands is there any way it can be back tested, i know its not easy as companies give dividends,splits etc..and accommodating these is difficult but still a broad idea can be obtained.....:)
 

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