What to do with the corpus after quiting from a fund ?

POSTED BY Suman ON April 25, 2013 9:30 am COMMENTS (2)

I have a MF portfolio which I created to achieve a certain goal in long term. I check the performance of the funds once in a year. In last analysis i found one fund underperforming (below than category average). So i want to switch to a different fund of the same category. But After i switch over, what happens to the sum i invested in the previous fund ? Should I redeem the amount and invest in a good plan lumpsum or keep the amount as it is ?

2 replies on this article “What to do with the corpus after quiting from a fund ?”

  1. Dear Suman, transferring full amount from non performer to good performer is the way ahead.



  2. Switch means two things

    1. Stop further investments in bad fund and start in good fund
    2. Redeem existing units in bad fund and invest in good fund

    You should do both of the above. if the fund is performing badly what is the point of keeping your money there anymore?

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