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Avoid Timing Markets

Don’t try to time the markets. Continue with your methodical investment approach…

I have invested in IDFC Premier Equity, IDFC Sterling Equity, HDFC Top 200, ICICI Prudential Discovery, Birla Sun Life Frontline Equity, Fidelity Equity, DSP BlackRock Top 100 and Reliance Pharma. I have been investing in these funds for the last 2 years via the SIP route, and I’m satisfied with the returns so far. I want to know if I should withdraw from these funds partially if the Nifty hits about 6,200 or 6,400, and maybe reenter later.
— S Raghunath

It is generally a bad idea to try and time the market. Re-entering the market is very difficult after you’ve actually called quits. It is extremely difficult to time an exit and entry into the market even for professional fund managers, which is why individual investors should avoid doing it. Equity is filled with surprises and the markets turnaround – on both directions – when you expect it the least. Hence, you should continue with your methodical investment approach, especially when you're already benefiting from it.

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