Demystifying Buy Low & Sell High Concept

posted on 28 December 2016 by Sunil Jhaveri

Sensex levels on January 01’2016 was: 26161. Sensex on December 26’2016: 26040. Last 52 week high was 29,045 as on September 08’2016. In short, with a Roller Coaster Ride, Sensex delivered practically no returns in 2016. However, if an investor would have invested through Asset Reallocation strategy either through say MisterBond’s Algo or a scheme like Motilal Oswal Dynamic Equity scheme or ICICI Prudential Balanced Advantage Fund; returns would have been on the positive side of approx. 5-6 % p.a. How does this happen & why does this happen? My own Algo has shown allocation of only 40% in Equity over past 9 quarters starting from January 2015. Does this mean that Asset Rebalancing schemes have remained static throughout this last one year period & no movement happens in these Rebalancing schemes?