Hai there’s great ETF on this planet is Ticker title is TQQQ its a nasdaq100 leveraged ETF
i’m investing each day SIP on this ETF – that is huge threat and large reward ETF – SMALL PORTION WE CAN ADD IN OUR PORTFOLIO
i’m investing each day 10 greenback on this ETF – tremendous volatility profit in SIP we will get
if Any physique INvest 10000 greenback in 9 years in the past – now its price 1.2 million greenback think about
Sounds precisely like a mutual fund commercial.
long run passive funding + leverage looks like an exceptionally silly concept to me. When powerful instances come, capital will possible vanish irrespective of how a lot it goes up. How will they handle market crashes??
@SpacemanSpiff you are able to do solely SIP on this ETF – Lumpsum Not Advisable
any huge crash you may get extra models – extra volatility extra revenue – this ETF is not going to go to 0
however every single day SIP will reap a giant profit
Bosss this isn’t adverts – actual occurred already
See the AUM 22 Billion
there’s 1.2 million Dollar price averaging (SIP) account is there from inception
okay, i did not examine it. But its not significantly better. In regular instances, is likely to be okay. But massive crashes will nonetheless wipe out capital.
In a mean bear market, traders can simply count on a drawdown in extra of 75% utilizing 3x leverage. In a extra extreme bear market, the injury might be almost unimaginable to return again from. Had the 3x leveraged Nasdaq 100 ETF been round in March 2000, it could have misplaced over 99.95% in the course of the ensuing bear market that took the Nasdaq 100 down by greater than 80% to its low in October 2002.
A 99.95% loss requires a acquire of 200,000% simply to interrupt even. Needless to say, a 200,000% return would not occur in a single day. At an 8% annual return, it could take virtually 100 years of compounding to hit 200,000%. That assumes a straight line, which isn’t the way in which markets work. If there’s one other crippling bear market with excessive volatility in that 100-year interval (a close to certainty), this timeline may very effectively be prolonged for one more century.
A visible of this idea could also be extra instructive. While after the 2000-02 bear market the Nasdaq 100 hit a brand new complete return excessive in February 2015 (orange line in chart under), a hypothetical 3x leveraged publicity would nonetheless be 91% under its March 2000 excessive (blue line in chart under) . The unbelievable rally since March 2009 is barely noticeable. That is the maths behind positive aspects and losses, the place the proportion acquire required to make up for a loss will increase exponentially because the loss approaches 100%.
This is Index possession Not single inventory possession
for instance reliance is buying and selling @ 2900 however its heavy value , i want to purchase 1200 rupees – on this scenero you should purchase at these value
But in leveraged ETF you may get alternative lot of time in draw back, i’m actually comfortable to purchase on draw back rater then up
its actually for long run funding
every single day 10 greenback actually its willl work tremendous SIP on this ETF
this isn’t 100 % in nasdaq 100 – there’s a cushion for max drawdown additionally
i’m placing my cash in my total portfolio is 2 % solely –
if i capable of make a giant quantity of greenback then is 2% allocation is okay
sure, is smart.
Good to know threat however there’s potential reward too if good instances proceed.
Even with 2%, there in all probability ought to be some kind of exit plan, in all probability might want to guide partial income as getting out when down appears unimaginable right here. Otherwise what is the level. Anyway, good luck.
Someone would possibly learn your preliminary publish and never have management over threat, so greatest to see each threat and reward.
Do you even have an FOF regarding this. I’m not a fan of ETFs. I’d prefer to see in regards to the FOF.
how do u purchase this etf. can resident indian purchase this
QQQ tracks NASDAQ100, TQQQ is extra like a hedge fund with derivatives – a lot a lot greater threat. Right now NASDAQ 100 is working highs, so one will see all good with it. I could not discover any Indian MFs that observe TQQQ.
#TQQQ #Leveraged #ETF #Nasdaq #return #12 months #SIP