Dear Investor,
Quite often we at Master Mind Financial Advisory come across with a question that what is the best time to sell our mutual fund investments. In this newsletter we have addressed our revert for your kind perusal.
• Your financial goal is falling due for fulfilment:
For example, you invested in mutual fund schemes to finance the higher studies of your child. In the next six months, your child is applying for a post-graduate programme. You should start redeeming your mutual fund investments under such circumstances to fulfil your goal.
• When your asset allocation has deviated significantly from your original allocation:
For instance, you originally invested 60% of your investable corpus in equity mutual funds, 30% in fixed income instruments, and 10% in gold. But last month you discovered that the proportion of your equity assets in your portfolio has gone up 80%. Under such circumstances, you might book some profit in mutual funds and reduce the weight of equity assets to 60%.
• When mutual fund schemes in your portfolio have been consistently underperforming their benchmark and peers:
You recently found that a mutual fund scheme in your portfolio has been underperforming its benchmark and the category peers consistently across time periods: 5-years, 7-years and 10-years. Perhaps this is the time to eliminate these schemes from your portfolio and replace them with better alternatives.
• The fundamental attributes such as risk profile, investment preferences of the schemes have changed:
Assume, after the implementation of SEBI’s reclassification norms, a mutual fund scheme decided to convert its mid-cap oriented scheme in a multi-cap oriented scheme. You being an aggressive investor, the fund might have become unattractive to you. Under such circumstances, you might redeem a mutual fund scheme.
At Master Mind Financial Advisory we believe it’s not only important to carefully select the mutual funds but to know which funds suit your portfolio best after availing services of an advisor.
Before you invest in mutual funds, you should know:
• The age bracket you are in
• Your current financial health
• Your risk profile
• Follow advice of an unbiased advisor
• The estimated ballpark figure for your financial goals
• Time horizon in hand before financial goals befall
• Chart out a personalised asset allocation chart, which is done by the professional
• Performance track record across timeframes and market phases to invest in best mutual fund schemes, where in expert will be better guidepost.
Aren’t sure which mutual fund scheme you should invest in? This is where a professional plays a vital role. The key to your investment success is quality advice and astute selection of mutual fund schemes by an advisor. You should choose your advisor after due diligence only.
Quite often we at Master Mind Financial Advisory come across with a question that what is the best time to sell our mutual fund investments. In this newsletter we have addressed our revert for your kind perusal.
• Your financial goal is falling due for fulfilment:
For example, you invested in mutual fund schemes to finance the higher studies of your child. In the next six months, your child is applying for a post-graduate programme. You should start redeeming your mutual fund investments under such circumstances to fulfil your goal.
• When your asset allocation has deviated significantly from your original allocation:
For instance, you originally invested 60% of your investable corpus in equity mutual funds, 30% in fixed income instruments, and 10% in gold. But last month you discovered that the proportion of your equity assets in your portfolio has gone up 80%. Under such circumstances, you might book some profit in mutual funds and reduce the weight of equity assets to 60%.
• When mutual fund schemes in your portfolio have been consistently underperforming their benchmark and peers:
You recently found that a mutual fund scheme in your portfolio has been underperforming its benchmark and the category peers consistently across time periods: 5-years, 7-years and 10-years. Perhaps this is the time to eliminate these schemes from your portfolio and replace them with better alternatives.
• The fundamental attributes such as risk profile, investment preferences of the schemes have changed:
Assume, after the implementation of SEBI’s reclassification norms, a mutual fund scheme decided to convert its mid-cap oriented scheme in a multi-cap oriented scheme. You being an aggressive investor, the fund might have become unattractive to you. Under such circumstances, you might redeem a mutual fund scheme.
At Master Mind Financial Advisory we believe it’s not only important to carefully select the mutual funds but to know which funds suit your portfolio best after availing services of an advisor.
Before you invest in mutual funds, you should know:
• The age bracket you are in
• Your current financial health
• Your risk profile
• Follow advice of an unbiased advisor
• The estimated ballpark figure for your financial goals
• Time horizon in hand before financial goals befall
• Chart out a personalised asset allocation chart, which is done by the professional
• Performance track record across timeframes and market phases to invest in best mutual fund schemes, where in expert will be better guidepost.
Aren’t sure which mutual fund scheme you should invest in? This is where a professional plays a vital role. The key to your investment success is quality advice and astute selection of mutual fund schemes by an advisor. You should choose your advisor after due diligence only.
