I have been following the ETF Shop from the last 2 years. I have got decent returns I.e. 9% Annualized returns in the last 2 years where the market has seen the ups, downs and sideways. Now the thing is this ETF shop works great when their is a bear phase but it doesn't give great returns when their is a bull phase. But since it's a low risk investment, I can continue with it even though it's giving us little low returns.
But what I have found out that we can increase the returns by simple trick. Instead of only investing in the ETF, I have started investing in ETF and Nifty 50 stocks. I have backtested the result and found out that this strategy has given more than 12% returns at the same time, where I got the 9% returns. That means over 3% more returns.
The startegy is simple, we will have a list of ETF and Nifty 50 Stocks. And whichever has been very near to its 52 Week Low, we will buy it. We will buy 1 script a day. Once it reaches the 3.14%, we will sell it along with the profit trailing. Profit trailing means, we will only sell if that script has gone down any day which can be way more than 3.14%. We will sell all the script which is available for selling on that particular day.
I have backtested 3 things. One with only ETF and with limited money it is giving us 10% returns. One with Nifty 50 + ETF but with unlimited money then I got 8.5% returns. The best returns I got is the Nifty 50 + ETF with limited money. That is giving over 12% returns. So I am continuing to invest using this startegy for a while to see how my returns are going to improve.
