DR SUNDEEP NIGAM
May 26, 2011 3:07 pm
should long term SIP investor in mutual funds book profit when market is at high
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…..
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.
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