profit booking in mutual fund

POSTED BY DR SUNDEEP NIGAM ON May 26, 2011 3:07 pm COMMENTS (2)

should long term SIP  investor in mutual funds book profit when market is at high

2 replies on this article “profit booking in mutual fund”

  1. Jagadees says:

    Best way to do would be having proper asset allocation suited for you (say equity to debt of 70/30 or 60/40). Do periodic rebalancing once in a year… Move to debt from equity if equity portion exceeds the limit and similarly move to equity from debt when equity portion drops below the limit… In this way you will automatically follow profit booking at market highs and allocate more to equity when market is low…..

    Regards
    Jagadees

  2. rakesh says:

    Yes we must always safe-guard profits. If you see a returns of over 25% then you can switch part profits to Debt/MIP funds.

    Rakesh

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