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  • Writer's pictureSahastha

Index Fund – 25% return in 3 months

Updated: Oct 4, 2023

At Sahastha, our investment philosophy is driven by values. Values derives from different parameters and concluded into a single actionable advice and that was the reason we were sitting in cash before March 2020 (pandemic) crash of stock market globally. Let us analyze our value strategy in combination with active portfolio management in making decent returns in Index fund.

We couldn’t catch the bottom as market started to pick up very soon which is quite abnormal in history of past crashes. None the less we started investing around 8000 nifty in UTI index nifty 50 and kept adding additional lumpsum till last week of June.

Now market was hovering around 10k levels and it was time to take profit in some units. As mentioned above, values are key for us while determining to stay in any investment and we don’t stay much long in overvalued scenarios. So we sold 65% of units in two different dates in July second week, clocking a profit of almost 25% in barely more than 3 months.

Now, such performance is rare cause we don’t really see that much of volatility every now and then. But you can only capitalize if you have sufficient cash and majority of your wealth is not driven by such trades. As told you at the beginning of the post, we were in cash majorly before crash and invested part of it, not all of it, to maximize gains and take advantage of volatility.

You can see actual trade values from the table above with actual dates of trading. As you can see we started around 8k levels and exited around 10k level. I have not given details of units which is still with us (35%), them too are in profit and we are planning to exit very soon. We have not added any units in index fund from last 3 months. Majority of our allocation planned towards equity is in cash right now, with minor focus in index and stocks (Indian, US).

Note: We do not promise or guarantee any return to any of our clients. Also, we do not sell any product as we are advice only.

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