I am invested in various funds with a total corpus of Rs 20 lakh which I will need over the next 3-12 months. In some funds, I am making money and some are at losses, but overall I am gaining. When should I redeem my investments? And after redeeming where can I park the funds for the short time?
Mukesh Karawal, Chandigarh
Give the short time period in which you need your money back, it is important to move all your investment to a short-term debt fund or a liquid fund to insulate yourself from market risk. This should be done irrespective of the profit or loss you are making on individual investment. As we suggest gradual investment in equities, it’s equally important to gradually disinvest as you get closer to your goal.
