Me and viswanathan have developed a excel sheet which compares TWINVEST and SIP. The file can be downloaded at:
This screenshot shows the differential gains which would have accrued based on Magnum Index Fund using TWINVEST versus SIP.
ParametersThe only parameter is the amount which you can invest monthly. Thats it. Just enter the amount in the designated column. Now when you are going to make your monthly investment, you have to enter two things
- Date of your investment
- Price of one unit of the MF
12 x amount you invest monthly, then just start a new twinvest. i.e You can start buying new MF with the monthly contribution which you make. But you have to enter the two things mentioned above and buy the units. The only thing is that your old TWINVEST has became self dependent. It would demand cash when it requires, thats it.
Now the cautions: This method is not for those people who expect to reap huge profits in a small amount of time. TWINVEST would give you better results only with time.
TWINVEST was designed to match the results of SIP with less risk.So TWINVEST would suite people with long term investment horizons.
Second, TWINVEST likes MFs which are agressive and little volatile. So it would perform better if it is used on agressive equity funds. Agressive equity funds are those which invest predominantly in Midcap stocks and in sunrise sectors. To show the performance of TWINVEST I have used an Index fund.
Work is going on modifying the method to perform more better. Comment all your queries/doubts.