What if? I like momentum. Hence if we Invest in top 20 stocks of Nifty 200 what is the lumpsum investment return and SIP (Quarterly on Rebalancing Day) for last 10, 5 and 3 years? Rule 1) Rebalancing every 1st Monday of each Quarter. 2) Stocks should be there in the index for minimum last three months 3) Calculate the Return for the last one month, two months and three months ending on previous open market day (Friday or Thursday or Wednesday as the case may be) of Rebalancing day 4) Based on the previous calculation, get an average return [(one month return + two months return + three months return) / 3] 5) Based on the previous step, we select top 20 stocks. 6) All twenty stocks are invested equally 7) In next rebalancing day, we will sold outperforming stocks and buy those new stocks which are included in top 20 stocks (slight confusion is there - whether we have to invest the amount which is arrived from sale proceeds, equally in new stocks or sell all twenty stocks and reinvest them equally in new top twenty stocks or rebalance individual stock which are continue in the portfolio for next period by selling excess or buying shortage of stocks for removing brokerage burden and purchase newly entered stocks )
This is such a great takeaway! Consistency beats timing — whether you invest daily, weekly, or monthly, staying in the market matters far more than micromanaging the schedule. The real “Maglev moment” is just showing up and letting compounding do its magic!
This is why I love Groww. Everything about them is simple, straight-forward and excitingly informative instead of being mundane. I have subscribed to Groww's IPO. Hope to get an allotment!
What if? I like momentum. Hence if we Invest in top 20 stocks of Nifty 200 what is the lumpsum investment return and SIP (Quarterly on Rebalancing Day) for last 10, 5 and 3 years? Rule 1) Rebalancing every 1st Monday of each Quarter. 2) Stocks should be there in the index for minimum last three months 3) Calculate the Return for the last one month, two months and three months ending on previous open market day (Friday or Thursday or Wednesday as the case may be) of Rebalancing day 4) Based on the previous calculation, get an average return [(one month return + two months return + three months return) / 3] 5) Based on the previous step, we select top 20 stocks. 6) All twenty stocks are invested equally 7) In next rebalancing day, we will sold outperforming stocks and buy those new stocks which are included in top 20 stocks (slight confusion is there - whether we have to invest the amount which is arrived from sale proceeds, equally in new stocks or sell all twenty stocks and reinvest them equally in new top twenty stocks or rebalance individual stock which are continue in the portfolio for next period by selling excess or buying shortage of stocks for removing brokerage burden and purchase newly entered stocks )
This is such a great takeaway! Consistency beats timing — whether you invest daily, weekly, or monthly, staying in the market matters far more than micromanaging the schedule. The real “Maglev moment” is just showing up and letting compounding do its magic!
This is why I love Groww. Everything about them is simple, straight-forward and excitingly informative instead of being mundane. I have subscribed to Groww's IPO. Hope to get an allotment!
What happens to final gains when we factor in brokerage costs?