POSTED BY April 25, 2014 12:14 pm COMMENTS (2)
ONHi,
We all know markets are all time high. As an investor, should I redeem investments and re-enter when they are low or stay invested for long term ? I want to know what should be the strategy one should follow? What your past experiences say?
Thanks,
Rajan
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Recently, read nice comment on this topic by Pattu:
If your asset allocation is tilted heavily towards equity due to the rally AND you have good chunk of money then think of redeem and reenter. Else, do not do anything.
Eg: If your planned ratio was 40:60 (E:D) and after the rally, you see it as 60:40 or 70:30, go for redeem-reenter provided you have sufficient amount of money to do that.
Dear Rajan, did you start investment with a market target point? If answer is yes, redeem. How ‘ll you judge that the new point is low enough to re-enter?
Thanks
Ashal