Should you shift existing investments to Value Research recommended funds?

Our Premium members must be familiar with our recommendation criteria for mutual funds. The opinion of the analysts in Value Research on mutual fund schemes is broadly segregated into three to four tags-Best Buy, Buy, Hold and Sell. 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.

A recommendation of 'Hold' implies that the investor can continue with their existing investments in the fund and stop making any fresh or incremental investments. Similarly, a tag of 'Sell' implies that the investor must exit his investments from the scheme and invest it elsewhere.

So even if you are not invested in the funds recommended by our portfolio planner but are invested in funds tagged as a 'Buy' or a 'Hold', you can continue with your existing investments. There is no need to exit from them unless they are tagged as 'Sell'.

But if any of your existing investments are tagged as 'Sell', you can simply exit from that fund and start fresh investments in any of our recommended funds. You can do this directly or through an intermediary of your choice.

However, while exiting a fund, be mindful of the applicability of the exit load and capital gains tax. Our Premium users can visit the 'Liquidity' section under the 'Analysis' tab of our portfolio tracker-My Investments. It will tell you how much of your invested money can be redeemed with or without exit load. Likewise, you can visit the 'Tax' tab to get a sense of capital gains on your investment.

You can also check out our Funds page to discover mutual funds as per your need.

To understand more about how our portfolio tracker helps you, read An awesome investment tracker for awesome investors

This article was originally published on April 05, 2022.