The Most Authentic Guide on Personal Finance and Investments


Words of Wisdom : "A successful man is one who can lay a firm foundation with the bricks others have thrown at him." ~ David Brinkley

NAV is down...should I sell?

Ques.  I am holding Fund ABC. Its' NAV is down. Please let me know if I should hold this fund or redeem it?

Ans. Your decision to sell any mutual fund (or even stocks) should not be based on the market fluctuations.


Instead there are certain other criteria that you must consider to ascertain whether it is time to sell your fund or not. These generally include the following:


- If you need money then of course there is no choice but to sell
- If the fund is under-performing as compared to its’ peers/benchmark
- If you are not confident of future prospects of the sector/economy
- If you have to rebalance your portfolio
- If there is a change in taxation policy 

- If the fund manager has changed
- If the fund characteristics have changed.
 

If you follow these guidelines you will, in most cases, make a prudent decision.
 

Buying and selling with market volatilities could lead to impulsive decisions, which will never make you money. You will tend to buy and sell at the wrong times leading to more losses than gains.

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Books by Sanjay Matai
[Click on the Pic for more info on my books.]
Powered by Blogger.

How to overcome the fears about your financial future?

Will I earn enough money, to send my children to the best of colleges? Sandwiched between multiplying expenses on my growing kids and eld...

Total Pageviews