Exiting a non performing fund and reinvesting!

#1
Hi

I wanted to know if I can exit a non-performing fund one fine day when I decide and then immediately transfer the exact amount to a new performing fund. Would this be a correct way please?

The reason I am asking is that last month I redeemed couple of non-performing fund like Birla Tax 96, Magnum contra etc and the total value was about 25K. I did not need the money so instead of putting back the whole sum to one of my existing funds, I started SIP of 2K each month. In the meantime the some amount lying in the bank has started evaporating by way of expenses. If the money was in Mutual funds, there could have been way out, but since I knew there was cash, you can say I created the expenses though it was necessary.

How does this work please.. If I am exiting a fund can i enter into a new fund same day? All this SWP and then doing SIP theory are very complicated and I do not understand them much..

Please advise..

Thanks

Jeet
 
#2
Hi Jeet,

You could do SWP/STP. Else, you could have gone in for a lumpsum investment last week when market was low. If you look out and if there is a volatility or dip, go and invest lumpsum.

Happy Investing !!
 
#3
if you want to invest lumpsum, i have read that its best to put it in ultra short term or liquid funds and then do an stp into an equity fund. personally havent tried it so not sure how it works or if its profitable
 

Similar threads