Gyaan guroovaar

Redemption on Mind?

When to redeem from a fund? Should I redeem at times like these? Here are few insights. Here are 2 of major reasons that you may want to redeem from a mutual fund:

1. When you reach your financial goal
2. When there is a major change in the fundamental attribute of the fund which no longer serves your financial goal

Even times like when you enter a different phase of your life (age) where you need to rebalance your portfolio, rebalancing is suggested, not redemption.

Should I redeem at times like these:

• If not for the mentioned 2 reasons, the answer is No. It is suggested to stay invested through different cycles of economy
• Panic redemption helps no body
• In case of massive panic redemption requests, there is no choice for fund houses but to sell at current price, irrespective of the buying price. Thus, get into a vicious cycle
• No one benefits from these kinds of situations, be it investors, distributors, fund houses or businesses

Disclaimer

Views provided above are based on information available in public domain at this moment and subject to changes. Please consult your financial advisor for any investment decision.

Document intended for distribution in Indian jurisdiction only and not for outside India or to NRIs. HSBC MF will not be liable for any breach if accessed by anyone outside India. For more details, click here / refer website..

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.