When to Redeem Mutual Fund Money?

I have invested in Tata Infrastructure Fund. Right now [as on July 2011], the returns are very less based on the current market. I have a need for money now, but can manage. Can I wait for another 3-4 months and is there any chance that the market will raise and the value will increase? Thanks for your valuable time and support.

5 Replies to “When to Redeem Mutual Fund Money?”

  1. You will often hear of the concept of having an emergency fund before you begin to invest. This is because you do not want to make an investment decision because you need the money. If you are considering an investment decision because you have a need for the money then you have to ask yourself if you are really ready to be investing. Ideally, the time to liquidate a mutual fund is when you retire and even then you don’t liquidate but rather distribute over the years that you expect to live after retirement (there are life expectancy tables that you can use to plan the rate of distribution). If the fund proves to be a bad choice in that it underperforms then it may be wise to exit and reinvest in a better selection but this also means that you need to review your selection criteria. There’s always a chance for the market to improve but there’s also a chance for matters to become worse. Investment is certainly not about the next 3-4 months.

  2. Infrastructure fund are not perform till last 3 years means all investor not get good return but you wait another 5 years you see all funds perform unbelievable. after that you redeem it.

  3. If it were me I would wait until year end, just because 4th quarter and 1 quarter are historically the best times in the stock market while summer is historically the worst (although has been solid this year). That doesn’t mean it will go up, but if it were me thats what I would do if you really wanted to sell it and not reinvest into another area.

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