systematic investment plans or sips well actually let me be a little honest they don't suck but if you're watching this video and you're really interested to learn how to invest please don't do an sip let me give you a better way to do this um and I'm sure you'll really love it the beauty is it'll only take about a minute every say a few months and will give you better returns than Sip and you can verify it for yourself whether what I'm saying makes sense or not is that a good deal if it is let's begin foreign [Music] first thing you must believe in equity okay which means you must believe in India if you think India as a country is growing over the next decade and is positioned extremely well and I think if you don't think that's true then you should drop this video this video is not fair right I believe it is India's time this decade so if you also believe continue watching second thing do not pay quick stocks I need everyone to pause the video right now and type I will not pick stocks but if you're not picking stocks okay well you'll basically invest in the index when I say India India is not zomato India is not paytm India is not Kingfisher India is say the top 50 companies listed on the stock exchange make sense so you can invest in an index fund please write this down Index Fund which invests in nifty 50 directly you can also invest in sensex that's also fine but index May invest that you're not picking a stock um you are picking basically the top 50 companies so you're not biased that's the second thing the third thing is you are going to buy when everyone is fearful I'll say this again you are going to buy or invest in India through an index fund when everyone is fearful and we call this Buy on dips but you know that they say but it keeps dipping how do you know how much it will tip that technique is what we're going to talk about today also shout out to Sharma sir who has helped me come out with this and I'm basically reading what he's written over here to you so let's begin the first thing we're going to do is we're going to look at what a general Index Fund does so I have Nifty open over here is this beautiful stock doing this this sorry the market didn't work but my point is it's really it's moving up and down a lot now the problem with this is is that you don't know where the bottom is so you in an sip you'll invest here you'll invest here you'll invest here every month you're putting in money and the reason you're doing it every month so that you average your entry point Okay the reason you do an sip is to average your entry point because you don't know when the market will go up or down so what if we found a way where you can invest in this area or this area or this area so not the bottom but around that area let's see if we can find this the first thing you need to do is open a Nifty chart and switch to a monthly chart remember you are a long-term investor now the five minute chart doesn't matter news doesn't matter monthly chart long term thus also training so over here you look at Nifty you'll see we can see sometimes the market Falls look at this beautiful fall down huge Red Bar then Market goes up then we have the corona crash over here then the market goes up small little fall here then the markets hopefully continuing to go up even when you go back in now something is interesting here I have added this indicator called RSI okay the relative strength index let's focus on our new strategy this is an accumulation strategy for long-term investors simply go to the RSI and change this into a two period RSI and when the RSI goes below 10 say it again when the RSI goes below 10 you need to shut down Netflix and look at the charts you want the monthly candle to close that means the end of the month and the first of next month you will see you will just ask one question last month did RSI close below 10 was it 9.88 or 9 or 8 or 7 if yes you will buy the index fund simple but you have to buy it um so let's let's see an example so all you have to do is I've drawn this dotted line over here at 10. as soon as you see this red line go below 10 we know that condition was mapped so here look at this uh you see this red bar this red bar um RSI closed below 10. we can see that it closed at 1.48 I mean that's almost zero and as soon as that happens you buy so that means this happened in 1st of February that's when you make your decision you purchase it the next month after the candle is closed um if you're very scared wait for the next candle if it's a green candle you can buy the green candle Thora you'll feel better but in either case it's a game of um wit and your mind right your mind will not allow it but again the three things you must believe you must believe that India is growing and I want to invest in long-term India and you must pick index funds and not a particular stock um the beauty is an index fund generally gives you maybe 12 to 13 percent uh return every year we call cagr which is basically the average overall long period of time uh with this strategy you're not investing every month right you're investing in larger chunks so in this case February March you put in a large chunk then Market went up now you can mix this maybe you can have a large chunk when the RSI goes down and then you can do a very small sip right uh maybe that could be one strategy but I'll leave that to you then let's move forward here we can see that ah this is horrible right the market closed at 11. which is one point less than what we wanted so you will not uh according to our strategy not invest so maybe doing a sip a smaller sip is better uh but putting a large chunk later on is good keep going I'm keep going cap we'll just look at the RSI now you will see over here oh this beautiful right March 2020. you know what that was right uh this is Corona crash and at this time the RSI is at 1.47 holy that's like almost zero and if you would have purchased the RSI here you would have got this nice move up what's interesting guys is that this recently also happened here June 2022 um and RSI was basically at what 7.18 which is below 10 and that would have been your other entry point so this is quite interesting right it's a good way to accumulate a good way to accumulate this is not a strategy to make money it's not a system it's if you believe that the market will go up instead of doing a sip try this when it's below RSI 10 you put a large chunk then do smaller sips then it falls below two you you buy a large chunk that way you're buying a dip and you're not averaging on the way up so think about how you want to do this I'd love to hear what you think of this in the comments and yeah we could learn from each other man like if you have some some other ideas in mind and if you like this idea put it again me and Sharma sir will feel very very nice um let me also go back in time little bit right see what um I love 2008. 2008 we can see here this Grand fall happened first of October month 2008 and that's when RSI was 3.72 you would have purchased here now here's the beauty okay one two three four five months the market didn't do anything and this is the times the sucks man he told me to do this is not working please don't do that uh this is just a way to accumulate six months five months nothing happened and then the market went up so basically this is not a strategy this is clever way to accumulate when markets move to an extreme downturn because of fear which is why we call this by the fear if you found this interesting please write something nice in the comments give me a like give me a subscribe check out these amazing series we did with tanmer you should definitely check that out it's really really nice I've also done a bunch of videos check those out we also do live sessions every Friday you should definitely subscribe for that because you will know what to do the week ahead and like always learn app never gives tips we never promise anything incorrect we are an education Channel learning from you and you from us see you in the next video