VR Logo

Do stop-loss and profit booking apply to mutual funds?

Dhirendra Kumar says why the concepts of stop-loss and profit booking doesn't really apply to mutual funds

Transcript: Generally speaking, it doesn't work anywhere. Never do any stop loss or profit booking in mutual funds. If you are concerned about capital erosion, go for balanced fund. You shouldn't look at mutual funds as a speculative investment. Mutual funds are definitely not as volatile as many individual stocks tend to be and that is primarily because they are diversified portfolios. One shouldn't trade in mutual funds too often and certainly not for a period of less than one year because it might incur you an exit load and short term capital gain tax.

Post Your Query