Hello
I have often heard of 'booking profits' periodically. Once the funds gives you the targeted 'X' returns, book the profit.
How exactly this works? For example, If i am a long term investor say 15 years from now and ABC fund gives me 18% returns, let us say , I redeem the amount. What do I do next with that money.. Ultimately, it is again the cycle of investments, either FD or MF or Stocks or PPF .. the surplus money would actually go away neatly as expenses, which otherwise would have remained in MFs.
May be I am not very clear what I wanted to ask, but i guess some one will offer their insights. I was under the impression, if you dont want money for long term, just continue your SIP, monitor once or twice in a year and allow it to grow. Only when the target year of withdrawal approaches, one must be concerned and shift to safer avenues.. how far is my thinking correct.
Thanks
Jeet
I have often heard of 'booking profits' periodically. Once the funds gives you the targeted 'X' returns, book the profit.
How exactly this works? For example, If i am a long term investor say 15 years from now and ABC fund gives me 18% returns, let us say , I redeem the amount. What do I do next with that money.. Ultimately, it is again the cycle of investments, either FD or MF or Stocks or PPF .. the surplus money would actually go away neatly as expenses, which otherwise would have remained in MFs.
May be I am not very clear what I wanted to ask, but i guess some one will offer their insights. I was under the impression, if you dont want money for long term, just continue your SIP, monitor once or twice in a year and allow it to grow. Only when the target year of withdrawal approaches, one must be concerned and shift to safer avenues.. how far is my thinking correct.
Thanks
Jeet
