When to sell a mutual fund?

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Everyone suggests when to buy a Mutual Fund or what fund to buy. But, when to sell a fund is something that we don't usually get much advice on. As a general investor, it is possible that you are unclear about when to sell your fund holdings to make the most of your investment. The purpose of this article is to shed some light in this regard…

Why taking a Selling Decision is more difficult than the Buy Decision?

Buying a fund or suggesting a buy is pretty straightforward. There is not much complication in this part but, when you must sell the fund is something is very complicated. Why?
What if you sell a fund today and after 3 months, the fund NAV goes up by 50% and you lost out on this boom because you sold it at the wrong time…

Sounds pretty feasible isn't it? This is exactly why taking a Sell Decision is more difficult than the Buy Decision.

Below are some general guidelines about when to sell your fund holdings…

1. Always keep a long term approach
Don't Sell on an Impulse
Sell only when you need the money
Always look out for external factors that might trigger an exit
Always look out for internal factors for an exit

What is a mutual fund?

A mutual fund is an investment vehicle that gathers funds from like minded investors and invests in equities, bonds of your choice at a professional fee. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors ( Full Answer )

What are mutual funds?

Mutual fund is a single pool of money collected from a large numberof investors. This money is invested in share, bonds and othersecurities by AMC. ICICI Prudential Mutual Fund offers mutual fundproducts that meet the customers needs.

What is mutual fund?

Answer . A mutual fund, also referred to as an open-end fund, is an investment company that spreads its money across a diversified portfolio of securities -- including stocks, bonds, or money market instruments.. Shareholders who invest in a fund each own a representative portion of those inves ( Full Answer )

About mutual fund?

You should consult a financial advisor before you start yourinvestments. They help you priorities your financial goals anddevelop a plan to suit your needs. They guide you to choose thebest mutual funds as per your investment objective.

What is mutual funds?

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. ( Full Answer )

How are mutual fund gains taxed?

A Mutual fund is a collection of stocks and/or bonds managed by an individual or team of individuals. Investors are able to purchase shares of these funds in much the same way they can purchase individual stocks or bonds. One of the biggest differences of course is how they are taxed. For example, w ( Full Answer )

How many fund available in mutual fund?

In India, there are 18 Mutual Fund (AMC) companies. They have been variety of products in open / closed end schemes. it all based on AMC's. On a whole, those funds can be broadly categorized into the following categories The Different Mutual Fund Categories in India are: 1. Equity Diversifie ( Full Answer )

When you sell a mutual fund that you have held many years what buy date do you use if you purchased the fund at various times?

Generally, mutual fund shares are purchased at varous times in various quantities and at varous prices. There are two ways to figure their basis (cost or purchase price). One, average basis can be single-category method or double-category method. The single-category method uses the average basis of ( Full Answer )

How many mutual funds are there to invest in?

There are numerous types of mutual funds that are available for investment. The Different Mutual Fund Categories in India are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Eq ( Full Answer )

What are index mutual fund and actively managed mutual funds?

An indexed mutual fund tries to match the performance of an index, such as the Dow Jones 100 or the S&P 500. An actively managed mutual fund is managed by one or more people ("portfolio managers") who work to invest in a certain area, such as "stocks" or "technology companies", and within that area ( Full Answer )

What are mutual funds for?

Mutual funds are investment instruments that are meant for peoplewho have a smaller appetite for risks, but seek higher returns thanthey would get on simple saving accounts or fixed deposits. That'snot to say that mutual fund investment is free of risk. Mutual fund investment offers schemes that su ( Full Answer )

What are debt funds in mutual funds?

Debt funds are specialized types of funds that invest in bonds andother debt instruments. Since they invest in debt instruments likegovernment bonds, corporate bonds, debentures etc the returns arenearly guaranteed and at the same time, since they are safeinstruments their returns are also only equi ( Full Answer )

What mutual funds?

Mutual fund investment is actually made up of pool of funds collected from various other investors to invest stocks, money market instruments and similar assets. Mutual funds are controlled by fund managers, who invest the fund's money and attempt to produce capital profits for fund investors.

What is mutual funds and mutual accounts?

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. A investment trust is nothing quite a group of stocks and bonds. you'll think about a investment ( Full Answer )

Does selling mutual funds increase your personal income for tax purposes?

Yes. Mutual fund houses give out a commission of 1 or 2% of the investment value to the agents/brokers who sell their MF products. This commission would be clubbed with your income and you would have to pay tax for it. ex: If you are an agent and you convince me to buy MF of XYZ fund worth $10,00 ( Full Answer )

How does a hedge fund differ from a mutual fund?

Hedge funds and mutual funds are both managed portfolios in which the securities are picked by a fund manager. The securities that are picked are the ones that the manager feels will perform well and are grouped into a single portfolio. Portions of these funds are then sold to investors who are allo ( Full Answer )

Can you only sell mutual funds at a cirtain time?

It depends on the mutul fund type. If it is an open ended fund, you can sell it anytime. You would have to incur the exit load the fund company may charge you for withdrawing your money. If it is a close ended fund, you cannot sell it anytime. You have to wait till your lock in period is over to sel ( Full Answer )

How do you get a mutual fund?

If you mean how you can invest in mutual funds, there are several ways to do it. You can buy them online or you can check with your bank as a number of banks sell mutual funds. You can also seek help from a broker company. For example, GEPL is a broking company that has a dedicated team of experts t ( Full Answer )

What are the methods for taking funds out of a mutual fund?

You can get monthly income by making a single investment in an open-ended scheme and redeeming fix value of units at regular intervals. Such a plan is called a Systematic withdrawal plan. A systematic withdrawal plan allows the account holder a certain level of independence from market fluctuation ( Full Answer )

WHAT IS fund management in mutual fund?

Fund management refers to investing your money in different fundsto explore more and gain more. With effective fund management, youwill be able to earn higher and higher. You can take help ofTradebulls to understand this further easily.

What is the difference between a mutual fund and a bond mutual fund?

A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market. Bond mf's are safer whereas equity fun ( Full Answer )

What is mutual fund and its type?

A Mutual Fund is an investment instrument wherein a capable and experienced fund manager would pool in money from investors and invest in the stock market on their behalf and share the profit with the investors. There are many varieties of mutual funds which include: . Equity funds . Debt funds ( Full Answer )

Who can help you invest in mutual funds?

Contact your local investment advisor in your bank. He/She would be able to guide you with the investment options in mutual funds. You may require some documents like PAN card, Address proof, Identity proof and also money in your bank account to conclude the purchase of the mutual funds.

How do you buy and sell mutual fund shares?

There are many ways of buying/selling mutual funds: . By visiting the sales office of the fund house and submitting documentation to execute the buy/sell order . By asking for a registered mutual fund agent to visit you and finish the formalities w.r.t buying or selling them . By logging into y ( Full Answer )

What is a mutual fund PAC?

Pre-Authorized contribution. Think of it as a monthly payment of $25 into fund if PAC is $25

How many schemes in mutual funds?

Currently in India, they are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Equity Technology Funds (IT) 8. Arbitrage Funds 9. Equity Index Funds 10. Balanced Funds 11. Monthly Income Plans 1 ( Full Answer )

How safe are mutual funds?

Owning mutual fund shares offers some protection against the decline of any single stock in their portfolio because they own so many different stocks. However, a mutual fund offers no protection against a broad stock market decline in which most stocks lose value.

Is a mutual fund a high risk?

Mutual funds vary in their level of risk. Mutual funds that hold treasury bonds would be considered low-risk (although they may not keep up with inflation). Mutual funds that track broad-based indices, like the S&P 500 index, are considered moderate risk, as they are entirely invested in equities, b ( Full Answer )

Which is the best mutual fund schemes?

Some of the Top/Best Mutual Fund Schemes in India right now (As of Nov 2011) are: . HDFC Prudence Fund . HDFC Mid-Cap Opportunities Fund . ICICI Prudential Focused Bluechip Equity . IDFC Premier Equity . etc

Do shareholders own mutual funds?

Although mutual funds are usually initiated and often indirectly managed by investment companies, shareholders own the funds

How big were mutual funds in 1940?

Fewer than 300,000 shareholders, representing about $450 million in accounts, were participating in the industry in 1940

When did the mutual fund industry grow?

The mutual fund industry experienced explosive growth in the 1980s and early 1990s, as investors transferred assets from other financial sectors into mutual funds

How to close an mutual fund account?

You need to submit a redemption request with the mutual fund house where you have mutual fund investments. The fund house would have given you a folio number when you initially invested the money with them. You need to fill that up in the redemption form. Once you submit your request (Usually a rede ( Full Answer )

What are the benefits of a mutual fund?

Mutual funds offer an easy way to diversify money, control risk, and benefit from professional money management at a reasonable cost.

Why are they called mutual funds?

Mutual funds are called mutual because a large number of investors' provided money to form a pool to be managed by knowledgeable investment professionals.

What is equity oriented mutual fund?

What is an Equity Mutual Fund? A MF scheme that invests at least 65% of its fund corpus into equity and equity related instruments is called an equity mutual fund. Equity funds carry the most risk among all kinds of MFs because they invest in the stock market. This risk comes with the potential o ( Full Answer )

What is an equity fund in a mutual fund?

A mutual fund which invests a minimum of 65% of its fund corpus inequity and equity related instruments is known as equity mutualfund. As in the case of other mutual funds, equity funds also carryrisks as they investment in the stock market. However, they alsoensure high returns. Equity funds are of ( Full Answer )

What is the fee to sell a mutual fund?

In India, it is usually 1 or 2% of the total value if you sell your funds within 1 year from the date of purchase. It is called "Exit Load" If you sell your funds after holding on to them after alteast a year, then there is no fee.

What is a mutual fund what are the advantages of owning mutual funds?

Mutual funds are a professionally managed investment that poolsmoney from many investors to buy stocks, bonds and othersecurities. The advantages of this sort of investment are numerous.Mutual funds allow investors to diversify over numerous securities,chose investments that match their goals, and d ( Full Answer )

How does hedge fund differs from mutual fund?

Hedge funds and mutual funds are both managed portfolio in which securities are picked by a fund manager. However hedge funds are more aggressively managed as compared to the mutual fund. They can take speculative positions in the derivative securities .Hedge funds also differs from mutual fund in t ( Full Answer )

What are index fund in mutual fund?

Index funds are type of mutual funds that are intended to track the returns of the market's index.Index is a group of securities that represents particular segment of market.Rleiance mutual fund has recently launched Reliance index fund whose securities are covered in Nifty and sensex

Can you buy and sell open ended mutual fund anytime please suggest you?

Yes, open ended mutual fund work like a bank account.You can invest on any working day in any schemes you want to and you can take back the investment in part or full on any working day from most of the schemes within 72 hours.Where Reliance mutual fund provide the best information regarding buying ( Full Answer )

What does short selling mean with regards to the stock market with respect to mutual fund?

Short selling is little confusing.Basically it represents a sale of stocks you don't actually own,you borrow from someone else with the understanding you will return them later,and then you sell them.Short selling is essentially a bet that that the stock is overvalues where you can get the informati ( Full Answer )

How and where to sell a closed ended mutual fund?

A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which th ( Full Answer )

Can you sell mutual fund any time?

It depends on what type of funds you hold. If it is an open ended fund you can sell it anytime you want. If it is a close ended fund (with a lock-in period) you need to wait until the scheduled end date and then only sell the fund. Even in case of open ended funds, redeeming/selling the funds dur ( Full Answer )

An income fund is a mutual fund that provides what?

An income fund is a mutual that provides income. This means that several people join together so they can have a bigger budget when investing or having other people invest for you.This way the people investing will also get a higher interest rate.