When is the right time to sell a mutual fund to get maximum benefits? An expert’s opinion

The mutual fund’s scheme offers the safest investment option to the investors looking for a long-term ROI. Under mutual fund investment, the investors can make a better return under minimum return. However, there is one question that most of the investors still ask and that is when the right time is to sell our holding in the mutual fund. While going through the web you will find a number of answers to this question but no one will give the satisfactory answer to this question. But don’t worry we have researched the topic under experts and came out with following answers for you to know when you need exit the direct mutual fund to garner maximum profit from the deal.

  1. Should sell the funds when markets are touching highest value or going down

Most of the investors think that buying mutual funds when the market is going to highest value will be beneficial to make sure their profit. On the other hand when the market is experiencing the low most of the investors believe that should exit their funds in order to save losses as soon as possible. However, both of these strategies is just a myth the as the market is unpredictable and it works over the factors so it is waste to predict the outcome on your own. Both the methods will be flawed a will results in the opposite results than what expected. The fund managers are already making the sure about your find profit by continuously selling and buying them to cut down the loss. So, there is no need to make the decision on the basis of the market evaluation.

  1. If the scheme is underperforming that you should exit?

In case of the fund scheme, you invested in not doing well and you are facing continuous low in the investment then you need to reconsider it. Research down the factors of loss and match up the performance with your requirement. If the scheme is not performing to hold up to your planning for what you have bought in forts place, then it’s time to say goodbye.

  1. Should I redeem my mutual fund investment in urgency?

The open end mutual funds are very easy to liquify in case the investor needs the money in an emergency. If you need any unplanned capital support or an emergency hot you to acquire the money you dip your mutual fund unit anytime. The liquefying your units will provide you the money instantly. Never, redeem your fund units in case of urgency as it requires for some particular funding goals and the tax as well as exit loads are also applicable.

  1. Should I exit when my mutual fund goal is one year away?

For the investors who have taken the mutual fund scheme for particular goals like marriage, education and other time-related purposes they need to play smart. When you fund goal is almost a year or 15 months away then you should go for the systematic fund transfer (SFT). This will transfer all your fund to liquid fund or debt fund for saving your money from any volatility happens during the completion of the mutual fund.

Final Answer

All the above-mentioned answers are the conditions and requirement based on the investors to make better decisions. This means the investor needs to take the smart decision instead of going behind the market flow, this requires having a discussion with fund managers. The fund manager will guide you through the best path for making a money making or saving decision.

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