RCA STRATEGY
In December of last year I truly believed that the year ahead is going to benefit the Equity Markets. However due to the challenges that Investors would encounter I initiated a strategy of Accumulation, instead of a Buy and Hold Strategy. Also I wanted to employ a planned out method. Hence I used a fixed volume strategy and a set rupee amount strategy called RCA Strategy. We encountered some of the most extraordinary events that we never expected to happen. Despite the challenges the 2 strategies proved beyond doubt that planned investment approach is rewarding.
The present status of the 2 strategies are given below:
Fixed Volume Amount -
Fixed Volume = 5000 shares at a time
No of Shares Accumulated: 390,000
Scrip dividend: 6,901
Total Shares: 396,901
Amount Invested: 31,121,196.80
Dividends received: 345,000.00
Nett Invested Amount: 30,776,199.80
Cost Per Share: 77.54
Closing Price as at 12.08.2020: 81.00
Nett Sale Price: 80.09
Nett Sale Value: 31,788,879.58
Nett Gain/(Loss): 1,012,682.35
% Gain/(Loss) 3.29
Set Rupee Amount or RCA Strategy -
Fixed Rupee Amount = Rs. 500,000.00 at a time
No. of Shares Accumulated: 515,583
Scrip Dividend: 9,110
Total Shares: 524,693
Amount Invested: 39,500.000.00
Dividends Received: 378,820.10
Nett Amount Invested: 39,121,179.90
Cost Per Share: 74.56
Closing Price as at 12.08.2020: 81.00
Nett Sale Price: 80.09
Nett Sale Value: 42,022,628.12
Nett Gain/(Loss): 2,901,448.23
% Gain/(Loss) 7.42
The next stage of accumulation will only be if the prices fall below the 2 average prices.
Targets Placed are -
Ave Price + 50% or PE of 9.8 (EPS as at 31.12.2019 was 16.80, which can be lower in 2020).
