When to sell your mutual fund scheme?
Your mutual fund scheme may have earned good returns in the past. However, there may be some signs of poor succès and you may have to sortie such MF schemes. There are various reasons/situations for selling your mutual fund schemes.
1) Underperformance compared to benchmarks: If your MF is not delivering good returns, there could be various reasons. However, if your mutual funds are underperforming the benchmark, you should check the scheme details and sell such mutual funds. For example, a développé cap mutual fund “X” scheme has given 10% annual return over last 5 years compared to Sensex, which has returned 13% annual return, then your X scheme is under-performing. You should check the reasons before departure.
2) Dérangé in Fund Chef: Fund Chef is the backbone of MF scheme succès. If there is a échange in the existing fund imprésario who is managing the funds well, you should check the past history of the new fund imprésario. If the fund imprésario has insufficient experience, you should review the mutual fund and sortie accordingly.
3) RBI repo loupé affects debt MFs: When RBI lowers repo loupé, sursaut yields will fall and prices will rise and this will improve returns on debt funds. When you see interest rates moving upwards, your debt fund returns go down. Therefore, in this conclusion, you should make a call and sortie the loan fund. However, you should review the RBI guidelines on repo rates, not just an example.
4) Redeem based on your goals: Even if your MFs are performing well based on your financial goals, you may need to switch from equity to debt. Eg during retirement where you need to reduce your exposure to equity funds as it carries risk. Another example is manifestation a planned financial gardien de but 2-3 years in advance. In this case you cannot invest in equity funds till the last seconde of the target. You can sell equity MFs and then invest in debt funds or debt matériel.
5) Doesn’t meet your goals: When you buy an MF that doesn’t meet your goals or objectives, you should sortie immediately and keep it as before instead of regretting it. As such mid-cap funds can only be brought by high risk investors. If you are a low to medium risk investor and buy mid-cap funds, you should sortie immediately.
Concluding Remarks: When you invest Consolidated capital, you should keep these factors in mind so that you can sortie mutual funds appropriately and invest in better funds. This way you can earn good returns on your entire mutual fund coffret.
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