Should you sell mutual funds now?

Mutual Fund investing got very popular in India around 2017. The hype was so much that everyone wanted to break their FDs and move money into Mutual Funds. Even with Nifty PE around 28, Midcap and Smallcap at the extreme peak of their valuation everyone wanted to invest in equity. Surprisingly, even TV advisor and many other promoted equity as TIME TO INVEST IN EQUITY MARKET IS NOW. SIP was promoted as a war-winning machine like some Brahmastra against market volatility.

With the beginning of 2018, the market started peaking out, as the Winter in GOT (Game of Throne). Everything fell apart and many portfolios went down by 40% (i.e ~70% gains required, to get back the principal amount invested). Few smart investors exited on time, few moved to top nifty stocks, few stuck to their asset allocation and survived till now. The situation turned darker and darker with no hope ahead.



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यदा यदा हि धर्मस्य ग्लानिर्भवति भारत ।
अभ्युत्थानमधर्मस्य तदात्मानं सृजाम्यहम् ||
परित्राणाय साधूनां विनाशाय च दुष्कृताम् ।
धर्मसंस्थापनार्थाय सम्भवामि युगे युगे ||

Like Krishana said in Bhagavad Gita, whenever dharma declines and the purpose of life is forgotten, I manifest myself on earth. I am born in every age to protect the good, to destroy evil, and to reestablish dharma. Similarly, in this market fall and within global trade war tension, GOLD shined as a ray of hope for all investors.


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Should you sell mutual funds now?

As most investors invested in Mutual Funds are confused about whether to stay invested or move to Gold or FDs due to their negative returns in almost both SIP and Lumpsum. I found an interesting read in the book The Intelligent Investor by Benjamin Graham. It's a Must Buy recommendation of all new and existing investors. 

I have just touched upon only a small piece of advice from the book. This book in like Gita for investors and highly recommended by Warren Buffett. Just imagine the impact of understanding only one single page of this book on your investment philosophy.

My View, if you are stuck in Equity Mutual Funds: 

Stay claim and analysis the four points:

1. Your investment strategy (why you invested, your asset allocation and expected return)
2. The expense ratio of your invested MF, exit charges and alpha-generating capacity of your mutual fund. 
3. Tax impact of your decision (Short term/Long term gain/loss and tax harvesting opportunity).
4. Returns of your mutual fund against their benchmark and opportunity of returns in other investment avenues.

Always remember never book projected loss into permanent loss in a hurry, when market recovery good stock / mutual funds recovers losses within a few days or months. All the best for your investment journey. Keep Reading and Keep Earning !!!

Keep Enjoying the Life of Stressfree Investor 😃

Enjoy the best value for your money.

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