Should I redeem my Mutual funds profit even if my goal is far away ?

POSTED BY jvenkatkrish ON January 3, 2014 12:27 pm COMMENTS (7)

Hi Manish Need your suggestion— I have made decent profits on some Mutual Funds as I invest on a long term. Though i dont have goal to meet in the near future is it okay to book my profits. Do you suggest its always better to book profits irrespective of whether the goal is near or not.

Regards, Venkat

7 replies on this article “Should I redeem my Mutual funds profit even if my goal is far away ?”

  1. jvenkatkrish says:

    Thanks for your input, will give it a thought and take a call.

  2. Sibin says:

    If you are able to invest time on analysis and identifying value stocks then you shall proceed with direct stock.

    In my view 12% is good IRR and I would stick with the MF and I will rebalance the folio if debt to equity ratio varies more than +/- 5% to adjust it. This will give me a kind of profit booking when market is up (without timing the market)

  3. jvenkatkrish says:

    IRR. Yes direct investment to Stock. i have identified few fundamentally strong stocks based on my research that are undervalued at this point and i want to invest them there.

  4. Sibin says:

    Venkat,
    The 12% is absolute return or IRR? Do you mean to say direct investment to stock once the profit is booked?

    Thanks
    Sibin

  5. jvenkatkrish says:

    My Idea was to book profit periodically when it reaches 12% + and invest them in fundamentally strong Stocks and let the money work for me. Please let me know if the approach is ok.

    Thanks in advance,
    Venkat

  6. Mainly you need to ask , for you what is more important, protect this short term profit or reach your goal . IF you do not withdraw the money right now and let is run, will it still help you achieve your goal ?

    Also what will you ultimately do after withdrawing money ? Where will you put it back ? CASH in bank ? or some other place ?

    Manish

  7. ashalanshu says:

    Dear Venkat, if i’m in your place, I w’d not book profits. If you can not handle the situation of loss in return from here onwards, please book partial profits and invest the same into debt fund of your choice.

    Thanks

    Ashal

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