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Consolidating the Portfolio

Don't confuse your investment scene by holding too many funds

I have been investing in mutual funds since 2006. I started with a few good funds and now I have decided to restrict the total number of funds to around five. I have some funds in which I have stopped investing further, although these are well rated funds. Yet the original investment is still present. I would like to withdraw from those funds and reinvest in my existing funds that are also highly rated. What is the way forward? Shall I withdraw once the market gets better and earn a better return? How do I do it?
-Bhalchandra Joshi

Having a small number of funds in your portfolio makes it easy to track and manage your funds. However in order to consolidate your portfolio, trying to time the market would not be a wise thing to do.

Do not move all your money at one go. Systematically shift the proceeds to the funds that you wish to keep. Do a Systematic Transfer Plan (STP) if two funds belong to the same fund house. You can spread this process over a year or two.



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