Sell MFs with good gains held over a year and repurchse via SIP?

rs53

New Member
#1
Does it make sense to lock in the profit as there will not be any exit load and no long term cap gain tax by selling the funds that I have held over one year? The MFs are:

DSPBR Equity
HDFC Top 200
IDFC Premier Equity Plan A
Reliance Reg Savings - Equity

All are Growth options and all are top rated.

My thinking is to pull the money out and start a 9 Month SIP into the same funds. This is probably the last year where the long term cap gains will not be taxed. And secondly, good probability the market may cool off in coming months.

Any thoughts? Or better to let it ride. Thanks
 
#2
Does it make sense to lock in the profit as there will not be any exit load and no long term cap gain tax by selling the funds that I have held over one year? The MFs are:

DSPBR Equity
HDFC Top 200
IDFC Premier Equity Plan A
Reliance Reg Savings - Equity

All are Growth options and all are top rated.

My thinking is to pull the money out and start a 9 Month SIP into the same funds. This is probably the last year where the long term cap gains will not be taxed. And secondly, good probability the market may cool off in coming months.

Any thoughts? Or better to let it ride. Thanks
Its not a good idea. Never pull the money out in single time. U thought market may correct. See what happened today.. Sensex is almost 400 points up. So do not try to time the market. Still if u feel strongly that market may correct, may be u can stop the SIP(in one or 2 funds) for juz few months and see what happens. If market corrects u can restart the SIP .
Time we stay in the market is more important than timing the market.
DTC comes into effect from 2012 only.....
 

rs53

New Member
#4
Its not a good idea. Never pull the money out in single time. U thought market may correct. See what happened today.. Sensex is almost 400 points up. So do not try to time the market. Still if u feel strongly that market may correct, may be u can stop the SIP(in one or 2 funds) for juz few months and see what happens. If market corrects u can restart the SIP .
Time we stay in the market is more important than timing the market.
DTC comes into effect from 2012 only.....
Oh no, I am not trying to time the market. I am currently not into any SIPs for the funds I have. The idea was to sell out and lock in the profit and simultaneously reinvest into the very same funds - but this time stretch it out over 9 months via SIP route. The DTC comes into effect from 2012 so I have to do these swaps before March-31st as I understand it.

My advisor suggested to sell the funds and repurchase them the very same day so that nothing is gained/lost but gains are booked as long term for this tax year. That got me thinking. Rather than buying on the same day after selling, why not stagger it via SIP.

Thanks to all for your valuable suggestions. Always helps decide.
 
#5
Oh no, I am not trying to time the market. I am currently not into any SIPs for the funds I have. The idea was to sell out and lock in the profit and simultaneously reinvest into the very same funds - but this time stretch it out over 9 months via SIP route. The DTC comes into effect from 2012 so I have to do these swaps before March-31st as I understand it.

My advisor suggested to sell the funds and repurchase them the very same day so that nothing is gained/lost but gains are booked as long term for this tax year. That got me thinking. Rather than buying on the same day after selling, why not stagger it via SIP.

Thanks to all for your valuable suggestions. Always helps decide.
Ok. I understood the situation... I also vote for the SIP for few months...
Happy investing
 

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