You can ‘book profits’ if you need the money for any specific requirement.
What else would you do with the ‘booked’ money. If you need to invest it again, then the timing of investment and picking the right choice are decisions you need to make.
It is advisable to redeem your holdings when:
- You need the money for any requirement, like child’s education, marriage etc.
- Your current holdings have become unbalanced and you need to shift from one to another (rebalance). Eg equity is down, so sell bonds and buy more equity. Or equity is up, so sell equity and park in bonds. To find your right balance, take a free risk profile assessment.
- The fund you are holding is not performing well for quite some time.
If already invested, then switching to direct is really easy. Click here to start your switch.
Take the help of a SEBI Registered advisor if needed to make the decision.
