RIGHT TIME TO EXIT
MUTUAL FUNDS
Published By Livemint | 15 Mar, 2023
INVESTMENT PRODUCT
From FD to mutual funds, there are several investment products in the market
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TIME DURATION
In case of MFs, you need to decide investment period by yourself
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EXCEPTION
In MF, the fixed maturity plan category has a fixed time limit
HOW TO KNOW THE RIGHT TIME
Know factors that help in deciding period of a mutual fund scheme
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EXIT LOAD
Exit load is the amount charged on exit before a certain period of time
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CAPITAL GAINS TAX (CGT)
As Short Term CGT> Long term CGT, stay till the completion of short term CGT period
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BAD YEAR
If the actual goal can wait, avoid exiting market in a bad year
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EXIT FOR LIQUIDITY
Don’t exit fully from MF for cash needs. Rather choose partial redemptions and SWP
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FINANCIAL GOALS
Investors can park their liquid surplus in short term parking funds
ELSS SCHEMES
They have a 3 yrs lock-in, offer exemption benefit of equity returns
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1 LAKH WAIVER
Get up to 1 lakh long term capital gains waiver by withdrawing amount in a yr
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DIVERSIFY
Diversify your portfolio if it has higher % of weightage than required for risk proposition
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SIP
Avoid immediate liquidation in SIP after the end of enrolment period
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