is it correct to book profits in mutual funds

POSTED BY Manish awasthi ON October 19, 2012 11:08 am COMMENTS (2)

Hi,

I know Mutual funds are meant for long yerm investment but I would like to know is it correct book profits in mutual funds . two of my mf are giving some 13% return and looking at market trends of past 5 years  (going up and then going down ) and market is closed to its peak state if market is behaving abnormally then why we dont behave abnormally and book profits in mutual fund

Regards

Manish

 

2 replies on this article “is it correct to book profits in mutual funds”

  1. I would recommend dont do anything and let it grow, last 5 yrs have been really bad and does not represent a “normal” long term perfromance , the last 5 yrs performance is mostly a very rare 5 yrs in the history , you can check that yourself or just check my book jagoinvestor 3rd chapter and you will know what I am saying .

  2. TheZionView says:

    Question is NOT do you want to book profit but what are you going to with the booked profit. Investing in mutual fund is not like direct stock where booking the profits might make sense in some case.

    If you are going to book profit and just going to invest back into mutual fund it doesnt make sense.

    If your going to wait for market and invest back when its down again then what if it never comes down again. for example in mar 2009 if you had waited for sensex 8000 again then you will still be holding that money.

    Time in the market is more important than Timing the Market.

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