FMCG is a sector that is currently underperforming compared to other sectors. However, I anticipate the possibility of sectoral shifts in the market going forward, which could result in a rally in FMCG. Therefore, I have decided to take a position in an FMCGIETF to capitalize on this potential move. Since this ETF focuses on a sector, I have allocated approximately 5% of my capital to this position. Normally the maximum allocation that I go for in a scrip is 2.5%. However, a sectoral ETF is diversified within itself, and this gives me a bit more confidence to take a higher risk. The price action also gives me confidence in this decision.
As of now, my expected target is the high of the parallel channel. However, I will re-evaluate the market dynamics as soon as the price reaches the all-time high and will act accordingly.
Any further updates related to this trade will be posted beneath this message. Feel free to check them out too.
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Bro isit mutual fund or positanal trade? not aware of Etf
Sniper-Traders
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@SanjaySarma, ETFs (Exchange-Traded Funds) trade on stock exchanges like individual stocks, with prices fluctuating throughout the day. They often have lower fees and greater tax efficiency due to passive management. Mutual funds are bought and sold through the fund company at the end of the trading day, with prices based on the NAV. They may have higher fees and are actively managed.
ETFs come in various types, including equity ETFs that track stock indexes, bond ETFs for fixed-income exposure, and commodity ETFs for investing in commodities like gold or oil. Additionally, there are sector and industry ETFs, thematic ETFs focusing on specific trends, and factor or smart beta ETFs using alternative strategies for potential enhanced returns. Currency ETFs provide exposure to foreign currencies, while inverse and leveraged ETFs aim to profit from or hedge against market movements.
The current post that you are watching is of FMCG Sector's Analysis. But I took the position on an ETF that tracks this index. That post is attached underneath the main post.