As many of my regular readers will know, I had been investing in MF through SIP between 2008 all the way through to October 2015. Based on my experience of more than 7 years in MF investing and a much longer period of more than 2 decades in building a direct stock portfolio, I came to the conclusion in 2015 October that SIP was not the right way to invest in MF. After stopping the SIP’s I wanted to invest a certain amount through the year 2016. If you are interested in why I wanted to stop SIP, go ahead and read the posts in my blog.
My investments in MF are in the following funds and I was having SIP of 10000 Rs every month in each of them:-
- ICICI Prudential focused Bluechip
- ICICI Value Discovery
- HDFC Midcap opportunity
- DSP BR Micro cap
In 2016 I wanted to invest the same amount as before but it was to be based on the market levels rather than in a time dependent manner. Also, I was not worried if I could not invest the entire amount in this calendar year. After all, it is better to buy MF at an NAV of 45 rather than 50, by waiting for some time.
The proof of the pudding is always in the eating, so let me describe for you how my plan has worked out so far in 2016.
- I have made 3 purchases in the period January to March 2016.
- My overall investment goal was 4.8 lacs, out of which I have invested 60 %.
- After March, I have not really got a buying opportunity as I do not want to buy any MF with the Nifty being more than 8000. I am happy to roll over the surplus to 2017.
- My average buying price of the MF and their current price are as follows:-
- DSP BR Micro cap – Average NAV 38.5 , CMP 54.3
- HDFC mid cap opportunities – Average NAV 35.7 , CMP 47.6
- ICICI Value Discovery – Average NAV 105.4 , CMP 129.3
- ICICI Focused Blue chip – Average NAV 26.7 , CMP 32.9
I feel that my overall strategy of buying MF has been way more effective than SIP. At the end of the day I want to invest low and redeem at a high, which is the basic idea of any equity investment. Yes, I may not be able to invest the entire 4.8 lacs in this calendar year but that does not matter to me.
I am absolutely certain that Nifty will breach 8000 in the short term and I will buy more MF when that happens.