Salute, friends again. Today I will close all questions related to the replenishments of passive strategies. Since you ask a lot of questions just on this account.
Let me remind you that passive investment strategies work only when you make regular replenishment.
And the schedule of these replenishments should be strict. Once a month, once a quarter, once half a year or a year. Ideally once a month.
This means that you have to replenish the portfolio every month and make a purchase !!! The entire portfolio is entirely in the specified proportions.
Chaotic replenishment strongly reduce your yield.
Yes, I understand that this requires resources. But so you must configure the schedule of such replenishments.
And absolutely no matter the market falls or grows. You should not worry at all.
Unplanned portfolio replenishment
This option is not mandatory, but no less important. When the markets fall, it will be just an ideal decision to buy a portfolio (funds) through a certain% fall. Then your portfolio will be more profitable.
The standard is usually taken by the fund% of which in the portfolio more. Or if everything is approximately equal, then the most volatile.
Points of supevers are usually -10%, -20%, -30%. And now it is important:
1) Maximum need to take the one who was for your investment history. All that was in 2005 you are not interested)
2) DOWN NOT ONLY A SEE FUND, but the entire portfolio in your fractions%.
4) If you made this month with an unscheduled, then planned replenishment can not be done.
✔An last year, when the market fell 30% due to unscheduled replenishment, my portfolio made more than 60% yield in dollars.
These are the rules to replenish passive strategies.