When is the best time to redeem a mutual fund investment?

Is it when the mutual fund investment gives you an annualised return of 15%? 20%? 25%? or when the mutual fund scheme is not doing well?

Compare the mutual funds performance to other funds or the S&P500. A 15% gain isn't impressive if the market average is 20%. Likewise, if your fund is doing poorly, and everyone else is also doing poorly, the fund might not be that bad. If it is underperforming, redeem it and invest elsewhere. But if it is outperforming others stay with it.

depends I do look at performance of the fund for my one lone survivor of the Mutual Fund Era I had is CWGFX. Fees are important but if its a winner let it ride loser dump it. Some Funds I would drop in this market right now.

All times are good and bad! It depends on what NAV you entered and the market condition and above all your need of money

Follow the principles:
1.) Invest for longer period of time.
2.) Always follow your investment regularly.
3.) Dont hesitate to redeem your units when i) you are in need of money ii). when your target is achieved iii) when fund is not performing well. You may refer www.valueresearchonline.com. www.amfiindia.com for further knowledge about investment in mutual funds.

1, When the expenses increase.

2, When you can no longer take the risk and need to preserve the principal..

3, When the longterm returns dont exceed the risk free rate by a good margin, or when the fund isnt matching or exceeding its benchmark.

When you need to rebalance to keep your asset allocation in line.

For example, let's say you had decided that your emerging market allocation should be 5% based on your risk tolerance. Because of excellent returns, you now have 10% of your asset allocation in emerging markets, but your bond allocation had fallen from 10% to 5%. Move 5% of your emerging market fund to your bond fund(s).

You should heck your asset allocation every year to see what needs to be rebalanced.

If you enter retirement and are living off your investments, it's a good idea to keep a portion of your investments in cash - so when your emerging markets has done well, you might want to move some of that money into a money market fund.

This way, if the entire market tanks, you don't have to pull living expenses out of a down market.

(I assume you are not referring to rebalancing, but to a situation where you totally liquidate all your mutual fund shares.)

The only times you should redeem your mutual fund shares is if you have reached your goal for that money, the manager has jacked up the costs, or some unexpected expense comes up where you are forced to get some cash. You should not sell based on a certain percentage gain or loss. You should match your asset allocation to your time horizon such that you would not need to sell before you have reached your goal.

the best time to withdraw is when u need the money

NEVER

chk chart

sell with monthly sell signal

more on my blog

the best time is when u need money.

If you are buying mutual funds to trade i.e. make a fast profit then it is probably the wrong product. If you are investing for the longer term then you should have you money allocated between money market, bond and stock mutual funds. Let's say you have 10% in money market, 30% in bond funds and 60% in stock funds. If the stock fund gets hot you sell some of it to try to get your allocation back to the 10, 30 and 60 percentages. This will have you sell when the market is high and buy other investments when they are lower.

You should compare you fund to similar funds to see how your fund is doing. i.e. compare stock funds to other stock funds that have similar investment philosophies e.g. they invest in large US companies.

When the fruit is ripe, if not plucked it falls down. If you are satisfied with the returns, why come out, if not why continue. However, it is not a bad idea to redeem 50% from a fund to reinvest in newer schemes at par.

sirji
it is depend on you.
when you have to redeem.
but when market is on top at that time you have to withdraw and when market is in deep then you have to invest,

kamelsh lunawat
if you have any quesry about investment then you can contact me on my mail id lunawat_khushi@yahoo.co.in

If you get good equity idea than exit from mutual fund because now stock maket is stock specific and mutual fund is not doing good

If the MF scheme is not doing well, say bye to it.

If it is giving decent return of more then 20-30 %, remain invested if you dont need the money.

when you actually need the cash -- until than keep getting the rewards !!!

Buying is easy and selling should be just as easy. Just turn the chart upside down. I feel I'm asserting my committment, loyalty, smarts and sticktoitness by not getting out of a position. But I can end up looking stupid. In fact I was fired for hanging on to a loser. Thats why we're told to read Moby Dick.You know when Captain Ahab will not let go of his grudge with the white whale. Live and Learn.

when it gives u a return of 25%