GroovyDonut

Mutual Funds Buy / Sell

I started investing pretty late into MF's. Started with around 500-1000 rs per month around the covid period. I have stayed with those funds mostly equities. Till date have a decent XIRR of 30+ with around 20+% profit. (Dont even know what xirr indicates)

I am not sure whether I need to sell this funds and reinvest into another funds.

How to take that call. Any Mutual fund expert plz guide.

10mo ago

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DancingPretzel

Stealth10mo

Generally I tie my investments to a goal. Retirement, children education, vacation, house etc. I would have a target amount and a risk factor associated with it. For retirement I have high risk, since I have time. For kids education I have medium risk. For kids marriage high risk. For emergency fund low risk and so forth. You can derive your goals and then add risk factors for those. Google active fund/passive fund direct vs regular alpha beta sharpe ratio sortino ratio, debt/equity/hybrid/flexi/thematic funds. You should then have sufficient information to take a call.

DancingPretzel

Stealth10mo

Also google cagr vs xirr vs absolute returns

DancingPretzel

Stealth10mo

Goal will give you clarity on the timeline and performance and whether reallocate the funds to a different fund or not.

FluffyCupcake

Amazon10mo

Ah, typical case of “want to do something” to my investments. XIRR of 30% is quite good! Meanings and all you can simply google. To give one liner - it gives you a rate of return against SIPs made at different points in time.

Have patience and keep growing your money. I would recommend you to read some of the works from Parag Parikh, especially on behavioural finance.

GroovyDonut

Stealth10mo

I had the funds named parag. Never knew he was a actual person :D

SqueakyWalrus

Student10mo

So does motilal 😁

JumpyHamster

Stealth10mo

Keep continuing, you are tasting the first blood of compounding. Have patience and hold it.

GroovyDonut

Stealth10mo

🙏

FloatingCupcake

Optum10mo

You should continue to hold, the best thing to do is continue the sip and don’t stop it. Unless you have a need for money then you have to plan selling it in a process, use stp for that. You can use compounding to your advantage and create huge wealth.

TwirlyLlama

Stealth10mo

I wonder how people spend so many years on education- but can’t take few hours/ days to learn basic finance( personal/ corporate)

I am no one to stop u from asking on open forums.. just a basic advice - Learn on ur own - u will thank urself years later ( the reference is to ur comment on XIRR)

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