While it is very important to make a right mutual fund investment to get better returns, it is also very important to know the right time to sell your investment units to get the best benefit of them.
Read on to know more…
When you reach your target.
Sell your funds as soon as they reach the time maturity to invest them back in another mutual fund scheme to get better benefits. In case you are holding equity schemes in your portfolio, it is best to sell them a year or two before their maturity to and shift the capital to debt funds, to minimize the last minute risks.
When your fund is under performing
When you find that your scheme is under performing for more that 6 months, compare your fund with the benchmark and category. After proper analysis if you feel that your fund is in bad hands, it is better to shift to another scheme which you feel is the best. In market there is much more mutual fund apps available which helps you to find out which is best one.
Change in scheme fundamentals
Sometimes the fund managers will change the investment strategy of your portfolio based on certain ideas or benefits. If you feel your investment schemes s new strategy does not reflect your objective, it is better you find another one that fits your mindset.
When you have an emergency
Always look for at all other alternatives before you decide to sell your fund. Sell your investment only when you are left with no choice.