POSTED BY January 13, 2014 12:21 pm COMMENTS (9)ON
I am trying to re-balance my mutual fund portfolio but I am not sure if I need to redeem the mutual fund units all at once and re-invest it in a new fund or do it systematically every month buy redeeming only a portion of it.
I currently have investments in HDFC Top 200, DSPBR Top 100, Reliance Growth, Kotak 50 which are delivering below average returns. I would like to move it to UTI opportunities, BSL Frontline equity, SBI magnum global.
Please provide me with your suggestions.
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9 replies on this article “Rebalance my portfolio and redeem my mutual funds !”
Dear Kb, if your fund’s performance is better than it’s benchmark in each Calender year for last 7-8-9-10 years, you need not to worry.
Dear Kb, the question remains active, what ‘ll you do if the new chosen funds go in the same way? Please check the performance of your funds for last 9-10 calender years against it’s benchmark. Is it really underperforming?
So i guess the suggestion here is to continue in these funds rather than rebalance?
Dear Kb, why only 3Y? Why not 5Y or 7Y or 10Y?
Because 3 Y is the time frame where I had invested in these funds.
dear KB, how are you measuring the underperformance of your funds?
I am comparing the returns from these funds to its peers in same category over last 3 years.
Dear Kb, what ‘ll you do if in future the new funds chosen by you start underperforming from your entry date?
So Ashalanshu, what do you think is the right approach to re-balance portfolio? This is precisely why I raised this question.