My investments through monthly SIPs of Rs 25,000 in HDFC Prudence and Reliance Growth have grown to Rs 4.92 lakh and Rs 5.16 lakh, respectively, over the past 22 months. I have made a profit of Rs 1.92 lakh and Rs 2.16 lakh in these schemes. Should I sell my units now or book profits on Diwali because I may get even more? I am 55 years old.
- MU Shah
You seem extremely confident of getting even more money later on in the year. What is the basis of your confidence?
Going by your question, it is obvious that you want to sell your units, it's just a matter of now or a few months down the road.
We are assuming you do need the money in near future. Since you have already made a substantial profit, we suggest you sell the units and put the money in a liquid fund or a bank deposit that matures around the time you need the money. There is no telling the state of the stock market by then.
This article was originally published on October 01, 2010.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
