3 indicators for when you should exit mutual funds

Investing in mutual funds is becoming a rage among investors as they offer better risk-adjusted returns and come with many benefits like healthy investing habits, price averaging, etc.

Investments in mutual funds through SIPs have also become popular as an investor can pool in a certain amount periodically in a mutual fund for a specific period.

While looking for a mutual fund, investors should understand several schemes available in the market and for how long you wish to invest in that mutual fund.

However, there can be times when your mutual funds are not helping you achieve your financial goals.

One can also limit the loss in mutual funds. “Average your loss by investing in MF through SIP. Never churn your investments frequently. It causes more harm than good,” said Ajit Narasimhan, category head-savings and investments, BankBazaar.com.

Other than this, there are other reasons and indicators when you should exit mutual funds. Here are top 3 reasons why a person should exit mutual fund.