Retail investors today have become intelligent with their investment choices. They have realised that ‘safe’ investment options like bank deposits, post office savings, insurance policies etc will not generate inflation beating returns.
They have also realised that investing in mutual funds is their best chance of achieving their financial goals.
Retail investors have dodged the ‘safe-investment’ bullet by opting for superior investment options like stocks and mutual funds. But when it comes to the investment approach, they are still stuck with the traditional ways.
In India, SIPs are advocated as godsent and while they do offer exemplary benefits such as creating investment discipline and convenience, they do nothing for the already disciplined investor.
Regular SIPs do not follow the most basic albeit important investment principle. This principle is followed by great investors like Warren Buffett, Peter Lynch, and is the primary reason why FIIs make so much money in the market.
The principle for creating abundant wealth in the market is simple: ‘Buy on Lows and Sell on Highs’.
Unfortunately, a systematic investment plan is simply mechanical investing. It’s a disciplined investment approach where a fixed amount is invested at pre-decided intervals. But it does not consider market valuations and simply keeps on investing even when the markets are overpriced.
While they inculcate disciplined investing, regular SIPs lack efficient rupee-cost-averaging.
To optimise your rupee-cost-averaging & mirror the returns generated by FIIs, you need to do as the FIIs do: ‘Buy on Lows & Sell on Highs’.
While it's easier said than done, there is a smarter and superior investment approach which can breathe life into your dying mutual fund portfolio.
Introducing the Smartest Approach to Mutual Fund Investing - SmartSIP
RankMF - India’s best mutual fund research and investment platform has designed a unique, first in India, intelligent mutual fund order type - SmartSIP.
What is SmartSIP?
SmartSIP is an intelligent wealth creating order type that is similar yet superior to a regular SIP. SmartSIP works on the ‘greatest wealth creation principle’ of all times, “Buy on Lows and Sell on Highs’.
SmartSIP order type works efficiently to invest aggressively if markets are correctly priced and skips or sells your units (to book profits) when markets are extremely expensive and parks your money in liquid funds. All this is done automatically by RankMF’s Proprietary SmartSIP order.
How SmartSIP tackles market conditions vs. Regular SIP
| Benefits | SmartSIP | Regular SIP |
| Regular Disciplined Investing | ✅ | ✅ |
| Buy Low - Sell High | ✅ | ❌ |
| Skips SIP when markets are expensive | ✅ | ❌ |
| Invests in liquid Fund when markets are expensive | ✅ | ❌ |
| Invests double when markets are fairly priced | ✅ | ❌ |
Let’s look at the real SmartSIP vs. SIP data of UTI Equity Fund - Regular - Growth.
| Date | NAV | SmartSIP+ | Units (SmartSIP+) | SIP | Units SIP |
| 21-12-20 | 189.1638 | 5000 | 26.4321 | 5000 | 26.4321 |
| 23-11-20 | 182.983 | 5000 | 27.3249 | 5000 | 27.3249 |
| 21-10-20 | 162.8675 | 5000 | 30.6998 | 5000 | 30.6998 |
| 21-09-20 | 154.131 | 5000 | 32.4399 | 5000 | 32.4399 |
| 21-08-20 | 154.1204 | 5000 | 32.4422 | 5000 | 32.4422 |
| 21-07-20 | 145.7682 | 5000 | 34.301 | 5000 | 34.301 |
| 22-06-20 | 136.0348 | 5000 | 36.7553 | 5000 | 36.7553 |
| 21-05-20 | 123.1863 | 10000 | 81.1779 | 5000 | 40.5889 |
| 21-04-20 | 121.4327 | 10000 | 82.3501 | 5000 | 41.1751 |
| 23-03-20 | 107.0948 | 10000 | 93.3752 | 5000 | 46.6876 |
| 24-02-20 | 158.9768 | 5000 | 31.4511 | 5000 | 31.4511 |
| 21-01-20 | 154.6585 | 10000 | 64.6586 | 5000 | 32.3293 |
| 23-12-19 | 151.3048 | 5000 | 33.0459 | 5000 | 33.0459 |
| 21-11-19 | 147.7853 | 5000 | 33.8329 | 5000 | 33.8329 |
| 22-10-19 | 143.6366 | 5000 | 34.8101 | 5000 | 34.8101 |
| 23-09-19 | 145.0704 | 5000 | 34.466 | 5000 | 34.466 |
| 21-08-19 | 133.01 | 10000 | 75.1823 | 5000 | 37.5912 |
| Total Investment | 110000 | 784.7454 | 85000 | 586.3734 | |
| Current Value | 201.219 | 1,57,905.60 | Current Value | 1,17,989.40 | |
| NAV 1st Jan 2021 | |||||
| IRR - SmartSIP | 55.03% | IRR - SIP | 51.88% |
In a span of just 18 months, SmartSIP was able to generate 3.15 % superior returns on regular SIPs. Can you imagine the superior returns SmartSIP will create over a long term period of say 10 years? Magical!
While SmartSIP has solved the problem of mechanical investing, the second biggest problem faced by retail investors still persists - Selecting poor quality mutual fund schemes.
With 3000+ mutual fund schemes in the market, it is obvious that retail investors don’t have the time, resources or inclination to research all these mutual fund schemes.
They simply pass on the onus of research to financial websites, whose research methodology can be traced back to the neanderthals.
While there are multiple websites 'advising’ on which mutual funds to invest in, only RankMF, India’s best mutual fund research and investing platform, truly delivers on its promise to help you invest in the absolute best mutual funds in India.
RankMF has revolutionised mutual fund research in India as it challenged outdated bell-curve and historical data analysis with real time analysis courtesy a proprietary engine evaluating more than 2 crore data points EVERY DAY!
RankMF is the ONLY mutual fund research house in India to provide real-time, automated ratings for more than 3000+ mutual fund schemes.
So, there you go. RankMF has just solved two of the biggest investment hurdles faced by mutual fund investors in India.
So, ditch lazy SIP and invest smartly with SmartSIP by opening a FREE RankMF account today!
Remember, ‘sometimes it's the smallest decisions that can change your life forever’.
Experience life changing mutual fund returns with RankMF’s SmartSIP.
Think SIP? Think SmartSIP!
This is a partnered post.
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