Since Nifty 50 Index is 2% down today and around 16500, Is it good to place lumpsum order on Nifty 50 today?
Everyday is a good time to invest, If you can handle some temporary loss.
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Agree… This is why do SIP.
Additionally
if @Nathiarasan … if you know bit of technical analysis., you can take educated guess,
if your technical analysis suggest nifty chart is bottomed out… you can do lumpsum, otherwise you can choose to wait for nifty to bottom out.
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don’t need to watch technical.
Nifty is at 10% discount , just buy.
if it goes further down which I doubt. buy more.
Hi Mr Nathiarasan, buying or selling of stocks or Nifty ETF are all our persnal decisions based on our investment goal i.e the goal of getting return that we expect in rising market or the extent of losses that you can bear in a falling market.
The current market is a falling market and provides an opportunities for fresh investment . Timing the market to buy at the bottom is however often not that easy for common investors since it requires frequent monitoring the market, understanding the mechanism of market monvement and so on.
Even monitrong the market regularly may not gurantee buying at the bottom. Todays bottom if the market falls may not be the final one. Market may fall further. One can hardly predict with 100% certainty how long it will fall. All gusess based on technical analysis may not happen as predicted. The stock market is a place where we observe all random events ( like tossing a coin with a guess of head or tail ? )
So catching the bottom of the market to buy Nifty ETF is largely a matter of luck. Though catching the bottom of tha market depends on luck since common investors cannot predict future outcome with certainties, waiting till the bottom is reached is not a luck since we can observe it as a past events when the market starts making higher and higher lows day on day basis or week on week basis or month on month basis with passage of time. When market reachers 3 or four higher bottoms already, we can fairly expect it as a rising market.
Investing in a rising market may not fetch us Nifty ETF at an attractive price ( at rock bottom price ) but it can certainly fetch us a rising prices once we make investment on some falling days during the rising seasons.
If we use the above perspective of investment in Nifty ETF, The time of making fresh investment is yet to come. The current market ( Nifty 50 ) is still falling with it all time high at 18600 . It is yet to reach its bottom. The index has dived below 16700 with its low at around 16400. Let us see what are the next 3-4 bottoms, if they are at higher and higher levels than 16400, we can perhaps start again for steady gain going forward.
The above investing principle is my personal one. I do not gurantee any positive return even after investing on falling days in a rising market. Hence disclaimer applies.
Please take your own investment decisions at your own risk and cost.