Hyderabad: Mutual funds are an investment programme funded by shareholders that trade in diversified holdings and are professionally managed. And now, investing in mutual funds is a click away. Though the process is convenient for us with the changing technology, are we taking care while withdrawing our investments? we should think twice before withdrawing? Find out what to do and what not while redeeming mutual funds.
Closer to the goals: Every investment should have a destination. You need to decide this when you start investing in mutual funds. Do not withdraw a single rupee from the investment until you reach your goal. Sometimes you may not be able to deposit the required amount within the expected period. This is when you can try to recoup your investment. On the other hand, as the destination is another two to three years .. investments should be diverted from risk-averse schemes like equity to debt schemes.
For this, a Systematic Transfer Planner (STP) should be utilised. Like Zip, it serves to gradually divert your investments from equities to debt. With time our aims and goals may change while short-term investments may become long-term. In such a case the investment attached to it should be changed accordingly. Also, do not withdraw the investment when your requirements are fulfilled instead change your investment allocation according to your changing goals.
Experts say that there is a chance of good returns when investing in funds for a long time. The goal here should be to continue in the long run, but not to continue in funds where performance is not good at all. You should keep reviewing the performance of your funds at least once a year. Compare with other funds in the same category. If the revenue does not reach the expected level then changes should be made in them immediately.
