Time to book profits?

Aanchal has benefited from a booming market. In April 2020, she had invested Rs 25,000 in equity funds which turned to Rs 39,000 by the year end. Lured by the gains, she started a Rs 5,000 monthly SIP (systematic investment plan) from January 2021. Her Rs 2.4 lakh investment now has swollen to around Rs 3.4 lakh. While Aanchal is excited to see her investment soar, she now wonders if it is time to book profits. Don't, unless you need the money Withdraw only if you need the money soon. That's because equities are unpredictable over the short term. However, one should withdraw in a phased manner (if invested for a non-negotiable goal) at least 12 to 18 months before you need the funds. Don't time the market If you plan to re-invest the money when the market drops, don't! No-one can time the market successfully e

This article was originally published on July 15, 2024.