December 15, 2011 11:44 am
My Investment in MF’s are much below currently, should I transfer my funds towards liquid funds or not?
Do not redeem MF holdings at a loss….just sit on it. I did not redeem Magnum Taxgain when it was negative and now post 5 yrs, it is giving very handsome returns….unless an emergency dont withdraw….
Dear Vikas, the sky is going to fall. Run away right now. money is going down the drain. Do not listen to your brain. listen to your heart. Within a year or 2, market is going to touch 3000 or 2000 for sensex level. India & pakistan are going to war. Anna ‘ll be the reason of govt.’s resignation & midterm polls. America is going to bombed china. Europe ‘ll return back to stone age…………………………..
So the most sensible thing – redeem all your investment & keep in your house. All these so called experts ‘ll only increase your pain. Do not listen to anybody. Just redeem.
Just a last thought – in case all the above prove wrong & market goes to new highs, please do not look out for me to shoot me.
What the info is shared with you by dear codered, justgrowmymoney & ramesh is meant for the people with common sense. It’s up to you to decide that you have common sense or not.
I hope the message is clear to you now for your next course of action.
See by inverting the news:
Never before discount sales of equity-related products.
A flat 25-30% discount to ‘what you would have paid just a year back’.
Yes, there is a possibility of even more discount in the future, but surely, it is time to put your ‘long-term’ money into these heavily discounted sales.!!!
You never know, when this sale will be over.
Equity investments should be done only if you in for a longer haul. Otherwise…
Vikas – I dont know how long you are invested but if it is less than 18 monhs or so (I presume) your worries are too early. The market itself has fell from 21000 levels to 15800 approx 25% ~ in the last 12 months. If you MF has fell lesser than this you are really beating the market now. Some funds will perform below the market levels so even a minus 30% return is not that bad.
However if the fall is way below, say 50% -60% during this period (Dec 2010-Dec2011) and the scheme has a history of underperformance then tihs may be a good time to move away from such funds to other top performing funds. ELSE – JUST SIT TIGHT. MFs create wealth only over the very long term.
It’s bad news time once more. Around the globe, investors are running scared. Europe is well past the stage when the phrase ‘Greek tragedy’ qualified as a pun. Now, the phrase of the moment is ‘Europe’s Lehman moment’. Here in the US, where I’m travelling at the moment, the newspapers and news channels are full of the government’s impending budget crisis. Even the tabloid-ish papers have front page stories about how the government will shut down on August 5 and about America’s mountain of debt.
In India, the stock markets seem to have settled into a pessimistic mood. There are the occasional bright days, but in general bad news of all kind has created a miasma which doesn’t seem to be anywhere close to clearing. It’s just the kind of time when the whole idea of investing, specially investing in equity for the long term loses any urgency. You don’t get the feeling that you’ll be missing a bus by not starting fresh investments now. No great gains appear to be possible and therefore no great opportunity loss will take place if you don’t investment. So that equity SIP that you could have signed up for will probably go unstarted till you can feel some excitement of making money in your bones.
Unfortunately, for those who are saving and investing for the long-term, this would be downright dangerous frame of mind. This is exactly the kind of time in which you can lay the foundations of great long-term returns. Mainstream equities are stagnant, with frequent bursts of pessimism that drive prices down. An year or two of monthly equity SIPs in this supposedly uninspiring market and you would have built up a sizable chunk of equity holdings that have been acquired at a relatively low average cost.
For the thinking saver, these are actually very exciting times, the sort when you can quietly lay the foundation of your future fortune. As the chewing gum ads used to say, ‘lagey raho’.
Source: Value Research
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