When to Exit a Mutual Fund Investment
Financial Services Intermediaries usually focus on various factors while promoting a mutual fund to the investors, but seldom do we give any importance to the factors that warrant exiting an investment. While the benefits of investing, especially in equity funds, are derived in a longer time frame, that doesn’t mean one should forget about these investments and only take a look at them as the goal nears its target. This is because there are various factors that impact the growth journey of investments. Here I would like to highlight the importance of the right time to redeem mutual fund investments in the financial planning process and look at the major scenarios under which investors should be advised to take an informed decision to exit their mutual fund investments. *When to sell* While it’s true that mutual fund investments should be for the long term, a smart investor must also know when to make an exit and sell his or her mutual fund holdings. For most investors though, deci...