Blend core SIP strategy with dip-buying for tactical market gains

Seasoned investors, who understand the context of a downturn, are more likely to benefit from dip-buying than those who act impulsively or without a disciplined plan

Trading volumes in exchange-traded funds (ETFs) on the National Stock Exchange (NSE) typically spike when the Nifty drops more than 1 per cent, according to media reports. This indicates that savvy investors use such declines as buying opportunities.

 

ETF advantage

 

ETFs are well-suited for dip-buying as they offer intraday liquidity. “Unlike mutual funds, which are priced only at day-end, ETFs trade in real time, allowing investors to act immediately during sharp intraday declines,” says Arun Patel, founder and partner, Arunasset Investment Services.

 

ETFs have low expense ratios and don’t have an exit load. They also provide diversification so that investors