Right time to sell a stock: 6 signs indicating it's time to exit a large-cap stock

economictimes.indiatimes.com:

large-cap stocks that peaked and then remained stagnant or declined for years, you might wonder whether you should continue holding onto them. As an equity investor, the timing of when to exit a stock becomes crucial, especially if large-cap stocks make up a significant part of your portfolio.

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Here's how to decide if now is the right time to sell a large-cap stock.

If you have achieved or are nearing your financial goal

The decision to exit a large-cap stock should be based on reaching or nearing your financial goal. Even if your target timeframe is 1-3 years away, achieving around 90% of your goal could signal a good time to consider selling. This approach is based on the potential volatility of the equity market. If a market correction occurs, you may not have sufficient time to recover any gains. To safeguard your profits, an early exit may be prudent. Consider reallocating your proceeds to secure avenues such as liquid funds or fixed deposits. If you prefer a gradual exit strategy, you can systematically reduce your exposure to equities over the remaining period. This approach aims to balance risk and potential gains.

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Issues with corporate governance

As a company grows, effective management increasingly relies on well-defined systems