When should you book profits in your mutual fund portfolio?

Speaking on the ideal times when one should book profits in their mutual fund portfolio; Vineet Khandare, CEO and Founder, MyFundBazaar India Private Limited, said, “There are different times when you can book profits in your mutual fund portfolio. However, the most ideal time for booking mutual fund profits is when you have Once you have achieved your goal-based plan, you can book your profit accordingly.In the other scenario, you can definitely book a profit if your portfolio balance is required, which means that if you have equity in hand If you have more debt portfolio than you can transfer a part of it to equity or you can balance it with debt if you have higher equity value in some markets like the present time.Additionally, another reason where You can book your profits when it is your last resort and in case of emergency, mutual funds provide you with the fastest liquidity as compared to other asset classes.”

Asking investors to treat mutual funds differently from direct equity investments; Harshad Chetanwala, Co-Founder, MyWealthGrowth.com, said, “When we talk about profit-booking in mutual funds, it can be looked at differently than in direct equity. Mutual funds are managed by the fund manager. and they are in a better position to take a call on profit-booking based on their expertise and approach. Hence, mutual fund investors can count on the fund to make the right call.However, given the current market levels Given that, investors in mid-cap and small-cap funds can consider that these indices have risen 68 per cent and 90 per cent, respectively, in a year, which has led to some profits, he said, adding that investors whose upcoming Having financial targets in a year and a half, they may consider gradually shifting their stake from equity to non-equity based instruments.

Harshad Chetanwala of MyWealthGrowth.com said, “In an ideal scenario, one should redeem from a mutual fund only when they are closer to their financial objective or if their invested fund changes its mandate or the fund has been trading for a few quarters compared to its peers. performs poorly.”

When asked about the mutual fund schemes that an investor can look at if he is in the mood to invest, Harshad Chetanwala of MyWealthGrowth.com listed the following:

Low Risk or First Time – Any Nifty Index Fund.

Medium Risk – Any Nifty Index Fund, Axis Bluechip Fund, Parag Parikh Flexicap Fund and Kotak Equity Opportunities Fund.

High Risk – Mirae Asset Large Cap Fund, Parag Parikh Flexicap Fund, Kotak Equity Opportunities Fund and UTI Flexicap Fund.