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What do Buy/ Best Buy, Hold and Sell mean and imply for mutual funds SIPs?

Dhirendra Kumar explains the meanings of Best Buy/Buy, Hold and Sell recommendation of funds and what actions investors should take based on these recommendations

I am a subscriber of both Value Research Premium and Stock Advisor. In Stock Advisor, the meanings of recommendations of Buy, Sell and Hold are clearly given, e.g. Hold means do not invest more in that particular stock. But what do terms like Buy/Best Buy, Hold and Sell mean and imply for mutual funds' SIPs?
- Alok Chandra

Like Value Research Stock Advisor, Value Research Premium account gives you Buy, Sell and Hold recommendations, along with an extra Best Buy recommendation on funds. The difference between Buy and Best Buy is that Value Research analysts have handpicked Best Buy funds in each category based on several qualitative factors, such as their performance, conviction on the fund manager, etc. Buy, on the other hand, refers to reasonably good funds based on numbers but they may not be the finest ones in the category.

In the context of your SIPs, I would say that for funds that are marked as Hold, you should stop your SIPs but don't take your money out as it may be going through a bad patch currently and there may be an exit load as well. If you are looking for new funds to invest in, go for the Best Buy. If you are investing in a fund and want a quick opinion on the fund and if it turns out to be a Buy, don't worry. Sell is quite clearly self-explanatory.

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