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Shifting Invested Money

Move your money from underperforming funds to the funds that are doing well…

I have trimmed my mutual fund portfolio and stopped SIPs in underperforming funds like ICICI Prudential Infrastructure, Reliance Growth and Franklin India Prima Plus. The current value of my holdings in these funds is around Rs 2.5 lakh. Should I shift this money to my other funds like HDFC Top 200, HDFC Equity and DSP BlackRock Top 100?

Yes, this is exactly what you should do. You should spread the amount of the SIPs that you’ve stopped to the better performing funds and systematically move the already invested money to those funds as well. One thing you should be aware of is the tax implications. You will have to pay 10 per cent short-term capital gains tax on gains on investments that are less than a year old.

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