Redemption and Reinvest

POSTED BY Raghav ON July 12, 2011 8:52 pm COMMENTS (5)

I had a SIP on Reliance Growth from Jun 2006 till May 2009. Now as the performance is not upto the expectation, i would like to deply my investments in a better performing fund.

What should my strategy:

1. Redeem and reinvest in a equity fund all the money in one shot (or)

2. Redeem and invest in debt fund and do a STP to an equity fund

Any other suggestons?

Thanks.

5 replies on this article “Redemption and Reinvest”

  1. Manish Chauhan says:
    July 13, 2011 at 1:06 pm

    Do a SIP in next 6 months from your bank account

    Reply
  2. Raghav says:
    July 13, 2011 at 12:32 pm

    Thanks Manish,
    Do you suggest to do a one time investment of entire redemption proceeds or a STP from a liquid fund? Which is better?

    Raghavan.

    Reply
  3. Manish Chauhan says:
    July 13, 2011 at 9:53 am

    Raghav

    In 2008 when markets crashed , all equity funds saw erosion of 50-60% and then in 3 yrs they were back to their previous level. This can repeat .

    So HDFC equity is one of them . So now if you cant not see 50% erosion , then you should not invest in it . Better you go with relatively lower risk fund , go for HDFC Balanced or HDFC Prudence in that case .

    Manish

    Reply
  4. Raghav says:
    July 13, 2011 at 8:43 am

    Manish,
    Time frame is > 5 years. I will not be worried to see a dip of upto 30%

    Raghav

    Reply
  5. Manish Chauhan says:
    July 13, 2011 at 12:42 am

    Raghav

    What is your time frame and return expectations ? Can you see your investments dip by 60% at any point in time ?

    Manish

    Reply

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