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I’m a 59-year-old Class I central government employee. In the past two years, I have invested about 10 lakh in various mutual funds. Initially, I had suffered a loss of about 2 lakh during the first covid wave, but now the portfolio’s value has hit 15 lakh. I will retire in May 2022. Should I book the profit or wait?

—Name withheld on request


The answer to this question would depend on a person’s overall asset allocation and portfolio as well as his/her age and risk tolerance.

In your case, you would need to answer for yourself the question of how you would feel if the market plummets over a few days and your portfolio value goes down (again) to 8 lakh. If you think you won’t mind that and will stay invested, you can let your investment ride.

On the other hand, as is more likely the case, if you would feel hurt by the loss, it would better, if at least, you can book the profit and keep your original investment of 10 lakh continue in the market.

Srikanth Meenakshi is the founder of

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