The Right time to withdraw from a Mutual Fund
Investing in long-run is a game and not to forget, mutual funds help you in achieving your long-term financial goals, but this doesn’t mean that you should not look at your portfolio. Whilst these may involve adding new funds or it can be a challenging amount of money into different funds, also there can be a situation wherein you might need to exit your fund altogether.
These scenarios might help you:
- Changing in Fund(s): One of the main reasons for offloading your fund or the other from your portfolio is changes – either sudden or gradual – in its ownership, fund manager or mandate. Of course, you invest in mutual funds for some reason, and if this change, its best to re-evaluate your position with respect and take a call stating if you still need that fund in your portfolio or not. Else if you are thinking to invest in mutual funds online, why not talking to Gulaq. Also, if it’s not able to beat the benchmark over the time span, or if the return or risk is not as per your liking, you can consider the exit. The choice is all yours.
- Overlapping in Holdings: Whether it is by a function of time or just by design, you may realize at the end that funds in your portfolio happen to invest in similar stocks, or even the same market cap to an unintended overlap or the class of stocks. In this case, you might not achieve optimum diversification through different funds and later ‘can’ leave at-least one of them. The thoughts and opinions are of the investor.
- Other Reasons: There can be many other reasons too for existing a fund. For now, you may be investing for some goal which has nearly touched the peak, and you can redeem that fund to re-invest in some other holdings, may be short-term. You may also exit funds because you have too many to take care. The reasons are endless and how to invest in mutual funds online is another task. How about hoping to Gulaq? Let them take care of your funds. Sounds, good?
NOTE: Constantly exiting or re-entering the market might turn out to be an impediment. Make sure you take care of this.
More About: How To Redeem Mutual Funds Online
Disclaimer: Mutual fund Investments are subject to market risks. Please read the scheme documents carefully before investing.