If you’ll be able to deal with the dangers, keep invested

I’m a 59-year-old Class I central authorities worker. In the previous two years, I’ve invested about ₹10 lakh in numerous mutual funds. Initially, I had suffered a lack of about ₹2 lakh through the first covid wave, however now the portfolio’s worth has hit ₹15 lakh. I’ll retire in May 2022. Should I ebook the revenue or wait?

—Name withheld on request

The reply to this query would rely upon an individual’s general asset allocation and portfolio in addition to his/her age and threat tolerance.

In your case, you would want to reply for your self the query of how you’ll really feel if the market plummets over a number of days and your portfolio worth goes down (once more) to ₹8 lakh. If you suppose you received’t thoughts that and can keep invested, you’ll be able to let your funding journey.

On the opposite hand, as is extra seemingly the case, in case you would really feel damage by the loss, it might higher, if at the very least, you’ll be able to ebook the revenue and maintain your authentic funding of ₹10 lakh proceed available in the market.

Srikanth Meenakshi is the founding father of Primeinvestor.in

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