Emergencies never come announced. If you have an urgent unplanned expense coming up, you may have to liquidate your investment to meet emergencies. “To avoid such a situation, build up an emergency corpus in parallel. Also, research and invest in a sound health cover so that you do not dip into your savings to meet healthcare requirements,” said Narasimhan.
2. To meet milestones/goals set:
Mutual fund investments generally tend to be goal-based – be it for buying a car or home, education, retirement, etc. So, once you reach the goal you’ve set, liquidate the holding in earmarked funds for that specific goal.
3. When you sense a shift in the AMC’s focus:
The expertise, knowledge, experience and past performance of the fund manager, research team or investment committee are important factors to consider while selecting an Asset Management Company (AMC). “When there is a fundamental shift in an AMC’s focus – for example, frequent churn in key personnel of an AMC – it is bound to impact MF investors. So, any such changes may warrant a relook at the investment,” he said