When is the right time to exit a mutual fund & what are the tax implications? Shilpa Bhaskar Gole explains
Shilpa Bhaskar Gole, Founder & Chief Financial Wellness Coach, NerdyBird Financial Wellness, says “when you are reviewing your portfolio, what are some of those reasons which could lead you to having an exit strategy? I find in my area of work that there are four or five typical reasons why people will want to exit from the mutual fund. One question that I get asked most often is, I am invested for a long-term goal. You were also mentioning mutual fund as a long-term strategy. When is a good time for me to get out of this mutual fund and redeem my amount? That is number one.”
Do you come across a question where people ask you how one should exit a fund or if that even exists as a concept when you talk about investing in a mutual fund?
A lot of my clients ask me this question around exiting mutual funds. I think the first assumption that one must have is that you are talking about people here who are reviewing their portfolio on a regular basis and are reviewing it from the perspective of goal-based asset allocation. We are saying that whatever mutual funds you have in your portfolio are there to help you accomplish your goals. With that assumption in mind, a lot of clients come to me with that question. What we look for is what these exit cues are.
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When you are reviewing your portfolio, what are some of those reasons which could lead you to having an exit strategy? I find in my area of work that there are four or five typical reasons why people will want to exit from the mutual fund. One question that I get asked most
