We Design Your Financial Destiny


(Precious) Words of Wisdom : "The art is not in making money, but in keeping it." ~ Proverb

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.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

101 Classic Tips Money Gyaan

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
Powered by Blogger.

... Three VALUABLE Tips ...

1. Why Did The Beggar Refuse A Rs.2000 Note?
Mutual Funds or Beggar?
Do you keep your eyes closed to new investment styles and remain a beggar?

 


2. Refinance Home Loan In Early Years (For Maximum Gains)
Loan Refinancing
Think before you make your move to refinance your loan.

 


3. Prediction is Impossible. Here's The Best Way To Invest In Equity.
Equity Investing Rules
Therefore, the best way to make money in the future is Protection.