Should I Hold or Sell Mutual Funds I Was Pressured Into Buying?

Ans:

Ans: Hello Vikas. If you are investing for long run say 7-10 years. I would recommend to reconsider both mentioned schemes to better peer schemes. You may consider multicap and mid cap categories for your portfolio.

Ans: Hello;

Mutual funds invest it's AUM in assets like equity, debt, commodities or real estate.

The risks associated with these asset classes like business risk, credit risk, interest rate risk, economic risk, forex risk etc are also applicable to mutual funds.

But mutual fund as a product is just fabulous and is highly regulated with several checks and balances to ensure people's money is managed as per the mandate and is managed well.

People have created huge wealth by investing in mutual funds over a period of time and their are several live examples in front of us who substantiate the robustness of this product.

But you need to seek help from an MFD or an advisor or study yourself so as to avoid wrong investments.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Ans: Hello;

If your time horizon for investment is long term (7 yr+) then you may ignore these notional losses and stay invested and continue your sips.

If your target is near or dip in investment value is affecting your health then you should exit and invest in other investments avenues.

Happy Investing;

Ans: You have chosen a disciplined approach to investing. Market fluctuations are normal, and patience is key. Since your investment horizon is five years, your strategy must be optimized.

Reviewing Your Current Portfolio
Your investments are spread across different fund categories.

Equity markets can be volatile in the short term.

Over five years, equity funds can deliver strong returns.

Continuing SIP Investments
SIP investments reduce risk through cost averaging.

Investing consistently helps in long-term wealth creation.

You should continue your SIPs as planned.

Assessing Fund Selection
Multi-asset funds provide diversification but may have lower returns.

Large and mid-cap funds balance growth and stability.

Mid-cap funds have high growth potential but higher risk.

Dividend yield funds provide stability with lower volatility.

Portfolio Optimization
Too many funds can create overlap.

A balanced mix of large-cap, mid-cap, and multi-asset funds is ideal.

You may consolidate some funds for better performance.

Monitoring and Adjustments
Review your portfolio every year.

Rebalance if any fund consistently underperforms.

Avoid reacting to short-term market movements.

Final Insights
Continue SIPs to benefit from market growth.

Diversify wisely but avoid too many funds.

Review performance yearly and make necessary changes.

Stay invested with a long-term perspective.

Keep emergency funds separate from your investments.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment