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, ( 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.



  2. Alwyn Lobo says:

    Hi Manish,

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


  3. Can you name those mutual funds ?


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