Hi
Thank you so much for your advise. I am already investing in HDFC Prudence regularly and also started Reliance Regular Savings fund but not balanced but Equity fund.
Just one more query. When you say book profits is it in the following manner.
Ok for eg I invested 1000 and it grew to 1500. So booking profits means redemption of Rs. 500 right? Now logically what happens after I withdraw. Should I wait for the market to correct and then reinvest, but then we all say timing market is not possible. So what If I book and reenter in few days, then there will be no major change.. I have just done a fuitle exercise.. Surely, I am thinking something wrong here.. Can I know that please.
Regards
Jeet
Thank you so much for your advise. I am already investing in HDFC Prudence regularly and also started Reliance Regular Savings fund but not balanced but Equity fund.
Just one more query. When you say book profits is it in the following manner.
Ok for eg I invested 1000 and it grew to 1500. So booking profits means redemption of Rs. 500 right? Now logically what happens after I withdraw. Should I wait for the market to correct and then reinvest, but then we all say timing market is not possible. So what If I book and reenter in few days, then there will be no major change.. I have just done a fuitle exercise.. Surely, I am thinking something wrong here.. Can I know that please.
Regards
Jeet
This is all that one needs to know. Beyond that, everything else is not necessary. This is exactly the point that SEBI is trying to drill into the brains of big shots who manage these funds. Their job is to make a complicated stuff into something simple for a layman to understand.
Tell me this, did you start walking in 1 day? No right... neither did I. When I was new in driving cars, I would not see anything but the road in front and the rear view mirror. Nowadays, there is a cell phone in 1 hand and a coffee cup in the other. Needless to say, changing radio stations can be done with an elbow..
Start investing in a few trust-worthy funds that I have suggested earlier... I won't change it. Its ok to book profits and reenter. A few conservative investors invest initially only in FDs and postal savings (for capital protection) and invest the returns in midcap stocks for better returns. Remember, FDs return zero or even negative returns after adjusting for inflation. Everyone needs to own some equity.
Another thing with equity is that you might see the downward slide once in a while. You may get into a tendency to sell... do the opposite... buy more and hold your stocks. In order to protect against such downward trends, increase your SIP investments in these funds every year.
Tell me this, did you start walking in 1 day? No right... neither did I. When I was new in driving cars, I would not see anything but the road in front and the rear view mirror. Nowadays, there is a cell phone in 1 hand and a coffee cup in the other. Needless to say, changing radio stations can be done with an elbow..
Start investing in a few trust-worthy funds that I have suggested earlier... I won't change it. Its ok to book profits and reenter. A few conservative investors invest initially only in FDs and postal savings (for capital protection) and invest the returns in midcap stocks for better returns. Remember, FDs return zero or even negative returns after adjusting for inflation. Everyone needs to own some equity.
Another thing with equity is that you might see the downward slide once in a while. You may get into a tendency to sell... do the opposite... buy more and hold your stocks. In order to protect against such downward trends, increase your SIP investments in these funds every year.