Recently some of my ETF has gone down by more than 10% after recent downfall in the market. Now as per the previous data, the amount of time it takes to recover that loss amount is more. So what I intend to do is to start more investment when the ETF falls more.
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For example, say I bought NiftyBees for Rs 100, and if it falls down by more than 10%, it becomes Rs 90. So the better way is to start investing more when the ETF you bought have gone down by more than 10%. For me it is automatically happens with ETF ki dukan, where I invest when the ETF falls by more than 3%. But if you are investing in only one ETF, then you should invest more when it falls more.
That's where the ETF is so good, when the market falls I feel happy as a ETF investor because then I can invest more in ETF without thinking about any consequences. This is how most of the people invest in the ETF, invest using the SIP mode and when it falls more, increase the SIP amount. For example, the CPSE ETF has fallen by more than 10% in the last 2 months and thus today I have bought it more with some increased amount. And that's where the SIP investing helps when the market goes down. Like you can start investing 1K every month to that ETF which has fallen the most in your portfolio. I will suggest this SIP to do only in the ETF and not stocks if you are a conservative investors.
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Hi, This is an interesting approach. When ever there is fall in the market I usually exit from the position and wait for the prices to settle before going back in. What is the average time ETF takes to make up for the 10% fall?
It will take time till the time Market goes upto its original price. But now instead of investing in individual stocks because we don't know how much the stocks can fall. Averaging the ETF makes sense.
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