Selling of Equity Mutual Funds

POSTED BY Rohit Ghule ON July 20, 2011 10:00 am COMMENTS (2)

I have stopped SIP in the following mutual funds in March 2011
1. Reliance Growth
2. Kotak Opportunities
3. Sundaram Select Midcap

All these funds have dropped in performance & have moved down in rating ( as per ValueResearchOnline) over the period of last 6-9 months. So I stopped the SIP in all these funds.

I am holding @ 500 units of each of these funds. I am in confusion.

What I should do with existing units, should I sell them (bear the cost of exit loads) & invest the amount in other better performing funds
OR
Should I wait for 1 year(i.e. March 2012) so that I don’t have to pay exit load & then sell & invest the amount later.

Please advise.

2 replies on this article “Selling of Equity Mutual Funds”

  1. Ramesh says:

    People talk about long-term. 6-9 months is not at all that.

    Then people talk about “we can take risks”. These funds cater to mid and small caps which are more volatile.

    Then, SIP. SIPs make money / create wealth when you invest in the downturn.

    So, Mr Rohit, you are doing everything in an opposite way, which is not going to help you.

    Advice:
    Use 2 good funds (there are no best or 5-star funds for future, you will never be able to find them. valueresearch or morningstar or any other wont be able to predict a 5star fund 3 years down the line.). Keep multicap diversified funds. No sectoral or cap funds.
    Do SIP every month diligently.
    Dont look at market levels. Turn off the business channels. Please please stop checking performance of funds. It is better to invest in a good fund, which is performing badly when you are investing.
    Do your work and enjoy life.

  2. Rohit

    I dont think you should take decision like this so fast .. Equity markets are in a tight range from last so many months and 3-4 months of performance cant be judged upon . Wait for more time to take some decision . These all are good funds overall .

    Manish

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