ETF Strategy is Best For Regular Income - My Journey

I found a great strategy using the ETF which has given me a profit of 10% in the last 7 months and the CAGR seems to be around 16% or more. So I have completed 7 months in this ETF strategy and I am following diligently from the last 7 months. In the last 7 months, there was a bull run and might be people will think that because of that I am getting this good returns. But trust me this strategy is been tested in the bear phase too and it usually gives around 12% to 25% which is quite good.

I am not a trader and cannot watch the price action or the movement of the market always. I have a job, so I wanted to have a strategy which needs very little time of mine and can give me good returns than the Mutual Fund. Mutual fund is best no doubt about it but what if you want to generate that extra 1% to 2% which can be added advantage. This is where the ETF strategy can come into picture. When I have started the market was going sideways and thus I have been investing from the Day 1. But today it has given me quite a good returns.

I have started with less capital but seeing its result, I will be slowly increasing my capital so that it can give me good returns. And just like the Mutual fund, the risk is quite low because you are dealing with the ETF and not the direct stock. And ETF going to 0 is not a possibility.

As you can see above that the CAGR is around 16% which is quite good to be honest. December month was great and January was also considered good. I did not got a good return in Feb and March because the market was just hovering around the top.

Since I have started the Strategy using 1 Lakh INR, from January I have increased the amount to 1.5 Lakh INR that means now I will be buying the ETF for Rs 3K per transaction. So yeah the profit amount will increase by 50% which is good. And the next target is to increase my capital to 2 lakhs and thus my buying will be around Rs 4K per ETF.

Also the best part is that if the market starts to go down you start investing more and more which helps you to accumulate more at the lower levels. Like for example, yesterday the market has gone down where the Smallcap and Midcap has taken the most beating. So yesterday I have invested in 2 ETF and thus by today I gave got around 1% profit as the market has gone up today.

The good thing about the ETF strategy is that this strategy can be applied in any stock market be it Sensex, Nasdaq, etc whichever exchange has ETF in it. So yeah if you want to invest in the stock market of your country you can start with this ETF strategy which can help you to learn about the stock market and also help you to earn monthly returns.

I do not have to track any other stocks because getting above 20% returns without taking much risk. This also gives you the regular income where of you are retiree or wanted to get some money back as a profit can use this strategy. I am not saying that we will only use this strategy, this can be used along with other strategy which can help your money to grow. As a conservative investor I feel this strategy is quite good.

Posted Using InLeo Alpha