Mutual Fund Redemption

POSTED BY Alwyn Lobo ON November 6, 2012 11:25 am COMMENTS (3)

I had invested in SIPs in 3 Mutual funds since 2007, which had a good 3yr 5yr performance then.
The performance kept reducing as time passed, but i stayed invested. Because of non performance, Now I have stopped the SIPs in these funds and have started SIPs in other funds.

1. Do i Redeem the amount from these non performing funds or do i wait for more time ?(Assuming last 5 years were worst, (https://www.jagoinvestor.com/2012/09/worst-5-yr-period-in-stock-markets.html) and next 5 years would be better )

2. It may not be worth withdrawing all the amount (bcos of exit load for redemption <1year and also if i start investing in a new fund it would take atleast a year to avoid exit load).

3. if i withdraw now, i will not get considerable returns (if i had invested the same in FD i would have got better returns). it could also be possible that the situation does not improves with these funds. Do I stay invested for another few years and then redeem?

With the above 3 situations(which i could think of, may be there are more which you could add on..) what is the best option you people suggest me ?

3 replies on this article “Mutual Fund Redemption”

  1. Dear Alwyn, I can understand the 5Y period for SBI Tax gain but my dear friend where is this 5Y period in HDFC Eq.?

    My personal take, SBI Tax gain – Redeem immediately & invest in HDFC Eq. in lump sum. As it’s a tax saver fund, you ‘ll not be able to redeem beyond Jan 2010 holding as 3 Y locking period ias not compelted after that.

    thanks

    Ashal

  2. Alwyn Lobo says:

    Hi Manish,

    SBI Tax gain D, since MID of 2007
    HDFC EQUITY G, since mid of 2010

    Alwyn

  3. Can you name those mutual funds ?

    Manish

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today