When to Exit a Fund?

Since December 2007, I invested in a fund via a SIP. However, I have a few queries regarding my exit. When should I exit from the fund? Should I exit at one go or through a SWP? I know I can build a large corpus by systematically investing. But what happens if I regularly book profits? Or must I stay invested as per the actual plan? My other query is regarding the tax aspect. If I were to do an investment at one go, it's easy to determine the tax. What about in the case of SIP, when units are given to me at fixed intervals during the year? I have units that are around 3 years old some that are just a month old. -- Jayaram Krishnan Broadly, there are two issues that you want answered; the tax aspect and when to sell your investment. The tax effect Let's look at the tax aspect first. You have invested in an equity fund via a Systematic Investment Plan (SIP). If you invested in a dividend option, your dividends would be tax free. If you sell you

This article was originally published on February 08, 2011.