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What's the right approach to buying mfs

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navam

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Title is vague let me explain a bit.

So I buy MFs via coin and apart from traditional SIP style, I buy dips in market (doesnt have to be huge just when I feel like my portfolio is down 1-2% ), it has worked out quite well in the last 5 or so years, now the question, when I buy mfs today they don't get credited immediately or at the current price, so
1. My assumption is it gets credited at the price of the day when it's getting credited?
2. I usually place orders when I see my regular equity portfolio is down, but mfs price updates happen a bit later (generally a day late) so should I wait for placing an order till the mf reflects the reduced price or is there no harm in placing the order now since abhi toh milta nahi hai?
3. Is this approach stupid somehow lol? Generic thoughts about breaking out of SIP style to buy dips?

Thanks!
 
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navam said:
, now the question, when I buy mfs today they don't get credited immediately or at the current price, so
1. My assumption is it gets credited at the price of the day when it's getting credited?
Click to expand...
if you buy before 3:30 you get previous day NAV
else next days NAV
navam said:
2. I usually place orders when I see my regular equity portfolio is down, but mfs price updates happen a bit later (generally a day late) so should I wait for placing an order till the mf reflects the reduced price or is there no harm in placing the order now since abhi toh milta nahi hai?
Click to expand...
If you invest in MFS it means a long term investment
isme time spent in market is more important than timing the market
navam said:
3. Is this approach stupid somehow lol? Generic thoughts about breaking out of SIP style to buy dips?
Click to expand...
as long as it suits your risk appetitte its good
 
navam said:
1. My assumption is it gets credited at the price of the day when it's getting credited?
Click to expand...
If you buy before the cut-off time, it will be what was displayed to you when you place the order.
navam said:
2. I usually place orders when I see my regular equity portfolio is down, but mfs price updates happen a bit later (generally a day late) so should I wait for placing an order till the mf reflects the reduced price or is there no harm in placing the order now since abhi toh milta nahi hai?
Click to expand...
Whatever NAV you see on that day, the units will be allotted at the same rate provided you place the order before 3 pm. NAV is decided at the end of the day, so purchase the following day if you want the previous day's closing.
navam said:
3. Is this approach stupid somehow lol? Generic thoughts about breaking out of SIP style to buy dips?
Click to expand...
Stick to SIP. But in case you see the market dip, you can put in some lump sum. I'm currently downward averaging.
 
Last edited:
xywowowvw said:
if you buy before 3:30 you get previous day NAV
else next days NAV

If you invest in MFS it means a long term investment
isme time spent in market is more important than timing the market

as long as it suits your risk appetitte its good
Click to expand...
This cut off time depends on platform and payment method used for purchase. Read NAV applicability of that respective platform

COIN cut off time mentioned in below page:

support.zerodha.com

What is the applicable NAV when placing a mutual fund order on Coin?

What is the applicable NAV when placing a mutual fund order on Coin?
support.zerodha.com support.zerodha.com
 
navam said:
Title is vague let me explain a bit.

So I buy MFs via coin and apart from traditional SIP style, I buy dips in market (doesnt have to be huge just when I feel like my portfolio is down 1-2% ), it has worked out quite well in the last 5 or so years, now the question, when I buy mfs today they don't get credited immediately or at the current price, so
1. My assumption is it gets credited at the price of the day when it's getting credited?
2. I usually place orders when I see my regular equity portfolio is down, but mfs price updates happen a bit later (generally a day late) so should I wait for placing an order till the mf reflects the reduced price or is there no harm in placing the order now since abhi toh milta nahi hai?
3. Is this approach stupid somehow lol? Generic thoughts about breaking out of SIP style to buy dips?

Thanks!
Click to expand...
NAV also depends upon when AMC receives the money. I used Paytm money earlier for SIPs but they used to take 2-3 days to settle amount with AMC and NAV is allocated of the day amount received by AMC from Paytm.

NAV is declared at 9 PM every day by AMCs

Best approach is to watch the market till cut off time and if there is a fall in the market, then expect NAV to go down a little bit and hence an opportunity to top-up
 
I understand what you’re saying but I personally would not spend that much of my time and efforts for investing in MFs and calculating right date and time all these years especially if investment horizon is really long (10-15 years or may be more in my case).
What I do is, for SIPs I‘ve setup some on 5th of each month, some on 10th, some on 20-25th. This way if there‘s a small cycle in a month, it would compensate. Only thing is to ensure you always have funds available even on month end.

Now, for the times when overall market is down by even 1-2%, if I have spare funds I put that in index fund (Nifty 50 or next 50). These index funds imo are the next best thing to MFs.
 
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