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What is the right time to take money out of Mutual Funds?

Anmol Gupta

Typically there are two situations when people think about taking money out from their mutual fund investments.

  1. When the markets are high so they think about booking the profits
  2. When the markets are low and some people get panicked thereby taking money out of the mutual funds to minimize the losses

Which one do you think is the correct time to take the money out of the above two?

Well, as some of you might have guessed it, the answer is None of these :)

The right time to take out money from mutual funds is when you need it for your financial goals.

When we do financial planning at 7Prosper, the investment recommended by us are oriented towards your goals i.e. each of the investment is done with a purpose in mind. Let’s say you have two goals, the first goal being buying a car worth Rs. 6 lakhs after 2 years and another goal being going for a world tour after 5 years which might cost about Rs. 10 lakhs. The investments that we will recommend for car will be totally different from investments for world tour as the times that we have for investments to give return are totally different. Investments for 2 years will be much safer than investments for 5 years. The investments that we will do for 2 years will have a steady growth without much fluctuations so you will be in a position to withdraw them after 2 years. The investments for 5 years will have the potential to give you higher returns than 2 year investments, but their journey will not be as steady as that of 2 year investments. We will be optimizing the 5 year investments such that you are in a position to withdraw them after 5 years with optimal returns.

So, when you are with 7Prosper, you just have to sit back and relax and we take care of when to invest, where to invest and also when to take it out.

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About the Author
Anmol Gupta
Anmol is CEO at 7Prosper. He is SEBI Registered Investment Adviser, with expertise in Finance and Technology domains. Anmol is committed to help people achieve their financial freedom.

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