From last few months I have started another strategy which is like the ETF strategy and it is called as Money Tree or Paison Ka Ped. This strategy is inspired by famous YouTuber and Investor Mahesh Chandra Kaushik. As the name suggest it is about making a money tree which can give me money in regular intervals.
So the strategy is simple, I will select an ETF. In my case I have selected Niftybees which is an top ETF of Nifty 50 by volume. Now every month or week I will buy certain amount. If you have the money you can buy in bulk too at the start, but for me SIP works. So every week I will invest around 1250 or basically buy 5 units of the ETF. As of today I am holding 117 units. Now whenever the profit amount reach above Rs 1K, I will book that profit.
In this way my average buying amount gers increased. And then when the market falls by 2%, I will buy additional units and will continue to buy when the marlet falls in multiple of 2%. For example, when the market falls by 2%, I will buy Rs 2.5K worth of ETF, when it falls by 4% from my average, I will buy Rs 5K worth of ETF and so on. This is the way of averaging. Now this way I will buy more when the market falls and I will see when I get a profit of Rs 1K. In this way I will continue to book profit as well as buy more when the market falls.
When I have enough units for 1 lot, basically around 8 Lakh worth of ETF then I will start with option trading. Option trading only for hedging, that means if the market goes up I will book the profit but by chance if the market goes down I will get profit by option selling. So having profit in both the ways. But this is a long way to go, since I have just started and will take minimum 2 years to get to the 1 lot. Till that time I will continue to buy more and more units.
Like today the market has gone up and made new ATH and thus I have got a profit of Rs 1K and I have booked that amount. Till today I have invested along with that booked profit of Rs 2K and thus the continue to grow my money tree.
