Ask Value Research

Switching from equity to bond funds

One should never move from an equity fund to a bond fund because of the market movement, says Dhirendra Kumar

One should never move from an equity fund to a bond fund because of the market movement, says Dhirendra Kumar

Will you suggest switching my investment from SBI Focussed to SBI Dynamic Bond Fund?
- Arunabh Singh

Why would you do this? When you invest in equity, you are investing for at least five years and you are doing an SIP. And when you are investing in a bond fund, you normally do not want to take a great chance with your money and you want little superior return than what is available in bank deposits and liquid funds. So, I would say that both the funds are different. One is equity and the other is fixed income. If you are doing it to rebalance your portfolio, then, by all means, do it. It is a different story. But one should never move from an equity fund to a bond fund because of the market movement.

This article was originally published on June 25, 2020.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month