Why sip in any mutual fund is ok, but averaging a stock that is in nifty 100, is not?


#1

I have read many times that we should not average a stock. Here are few screen shot of MRF and a good mutual fund. Plz look at it and answer my query.
MRF
image

CRISIL NUMBER ! RANKED MUTUAL FUND

MRF MARKET CAP:27693 crore
CRISIL NUMBER 1 RANKED MUTUAL FUND ASSES:2262 CRORE

I am asking this, because i want to invest in MRF on every dip. Is it a good idea?


#2

you should first create a portfolio. don’t put everything in one stock. if you have portfolio already then balance the amount into different sectors. after this you can add stocks in your portfolio on every dip.


#3

In dip should i invest in every 4 stocks of my portfolio.
Suppose i have 4 stocks. Now after every 5% dip should i invest 25% of the invested amount in every 4 stocks. Is that right?
Portfolio are very less volatile as compared to a single stock.
Again why a small mf of 2k crore is ok for averaging a stock that has market cap of 27.5k crore it not?


#4

you have to invest in the stock which has fallen. if all the stocks fallen then you need to wait for a day or two to invest.

your portfolio should have one more Row called Cash in Hand. cash in hand should be at least 20% of portfolio at any point of time.

buy on dips means you should see dip in individual stock not dip in portfolio.

MF I dont know anything.