It is very toughest things about mutual funds to know when to sell it.Here we discuss some scenarios,you can keep in mind them when you sell a mutual fund.

1. WHAT IS THE RIGHT TIME TO
SELL YOUR MUTUAL FUND

2. WHEN TO SELL YOUR MUTUAL FUND?
 Buying and selling are the two phases of mutual fund
investment. When it comes to buying the most important
factor that one keeps in mind is the fund history and the
latest NAV of the particular fund.
 But when it comes to selling what are the major factors
to consider? Let discuss the important aspects to
consider while selling mutual fund

3. IS YOUR FUND UNDERPERFORMING?
 If your mutual fund is not giving returns as
expected then it is the time to sell it off.
For e.g., if a large cap mutual fund gave
12% annual returns in last 5 years
compared to Sensex which has the annual
ROI of 15% then it’s the time to sell your
fund.
 Before you decide to exit do check the reasons for its
underperformance. Sometimes it so happens that due to
market fluctuations there may be a short term low returns
which may stabilize after sometime.

4. CHANGE IN FUND MANAGER
 A Fund manager is the chief mentor of
a mutual fund.
 If you are happy with your current fund manager and
for some reasons that fund manager is replaced by a
new one then the time has come to exit the fund.
 Look out for the information on the new fund
manager’s history and if you are not satisfied with this
past performance then you should sell your mutual
fund

5. CHANGE IN FUND’S INVESTMENT STRATEGY
 While selecting a mutual fund you do a thorough research in
the funds investment strategy to see if match it up with your
financial goals. If it does only then you start investing.
 If your fund manager starts investing in such kind of
financial instruments that does not match to the original
goal of the fund then you should immediately sell the fund.
For eg., a small cap fund manager should stick to small cap
financial instruments and so a large cap fund manager
should do. If your fund manager for small cap fund starts to
invest in large cap fund then it all messed up. SO the time is
appropriate to sell your small cap fund

6. CHANGE IN FINANCIAL GOAL
 As time progresses the investment
goal may shift, so it is the time sell a
mutual fund. Change in goal may
occur for various reason, say for eg.,
you decide to retire 5 years early or
your child decides to go for Master
studies during his graduation.
 This is the time when you need to retool your portfolio
and shift from equity to debt funds in order to meet your
short term goals like child’s higher education. Or when
you are at the verge of retirement you cannot take the
risk to investing in equity so debt funds are a good
option.

7. REBALANCING YOUR PORTFOLIO
 Rebalancing your portfolio at the end
of each year is a wise decision.
 Every portfolio is a mix of equity and debt funds.
Usually equity funds are growth oriented while debt
funds yield to generate income. So if there is a wide
difference in their returns then you should rebalance
your portfolio. Rebalancing is a touch decision so be in
touch with your fund managers time to time and also
keep in mind your risk appetite.

8. CONCLUSION
 Hope the above information will help you to sell your mutual
fund. Always remember that a mutual fund is a
financial instrument vehicle that helps in achieving the
overall investment objective keeping in mind that “Mutual
fund investments are subject to market risks”
 An old saying: “Evaluate, evaluate, and evaluate any mutual
fund before buying or selling”.

9. THANK YOU !