Hello Fellow Investors!
Before anything else, let me clarify that my goal of investing in MFs is basically capital appreciation and retirement plans with is atleast 15 years away. Ofcourse, this can change in case of unforseen emergency or event!
I am still not getting how to deal with Mutual Funds Investments. Some people say book profits periodically while others advise stay invested atleast for 5 years. I am just confused.
I shall give you a live example. I started investing in Jan 2008 and was wise enough to continue my SIPs even when the market crashed and reached 8K levels. In the process, when the sensex reached 17K level, I withdrew an amount equivalent to profits earned. i.e is my investment was 1 lac and I reached 1.2 lac when sensex was 17K. So I redeemped 20K and kept my principal amount of 1 lac intact in the existing MFs. ( I hope this is what booking profits means
First I do not know if I am thinking right by doing the above. Secondly, the main purpose of writing this to you is now what? I mean I dont require 20K now, should I pump back to MFs again, should I wait or should I choose to put this 20K in safer avenues like PPF or FDs. Just want to get the strategy right.
Now, What I fail to understand, when people advise to stay invested for long term, markets keep crashing and coming up. When do we actually realise our gains then.
Please help me to clear this air of confusion. With lot of reading in the internet, one thing is for sure, some risk has to be taken to beat the inflation, I would never put money directly in stocks since I lack both expertise and financial capability to play with my hard earned money. So my only route is to invest in a lesser risk route through MFs, so please I need to know how should I handle it.
Thanks again
Regards
Jeet
Before anything else, let me clarify that my goal of investing in MFs is basically capital appreciation and retirement plans with is atleast 15 years away. Ofcourse, this can change in case of unforseen emergency or event!
I am still not getting how to deal with Mutual Funds Investments. Some people say book profits periodically while others advise stay invested atleast for 5 years. I am just confused.
I shall give you a live example. I started investing in Jan 2008 and was wise enough to continue my SIPs even when the market crashed and reached 8K levels. In the process, when the sensex reached 17K level, I withdrew an amount equivalent to profits earned. i.e is my investment was 1 lac and I reached 1.2 lac when sensex was 17K. So I redeemped 20K and kept my principal amount of 1 lac intact in the existing MFs. ( I hope this is what booking profits means
First I do not know if I am thinking right by doing the above. Secondly, the main purpose of writing this to you is now what? I mean I dont require 20K now, should I pump back to MFs again, should I wait or should I choose to put this 20K in safer avenues like PPF or FDs. Just want to get the strategy right.
Now, What I fail to understand, when people advise to stay invested for long term, markets keep crashing and coming up. When do we actually realise our gains then.
Please help me to clear this air of confusion. With lot of reading in the internet, one thing is for sure, some risk has to be taken to beat the inflation, I would never put money directly in stocks since I lack both expertise and financial capability to play with my hard earned money. So my only route is to invest in a lesser risk route through MFs, so please I need to know how should I handle it.
Thanks again
Regards
Jeet