May 24, 2017 2 min read

Do You Want to Withdraw Your Mutual Fund Investment? Be Sure!

Know how to act in the volatile market.
Does falling market affect your mutual fund investment? Are you afraid of getting negative returns continuously? If yes, then don’t think of quitting the fund, rather have patience as your investments are going to gain tremendous returns soon. Withdrawing money is not a solution; you have to act smartly to make your investment earn growth.

We have seen many cases where the investors act haphazardly and think of redeeming their money just after two days of their investments. When the market falls, the values diminish leading to the reduction in your invested capital. This doesn’t mean you need to switch your investments or withdraw your money to cover the losses, but let your money earn riches over a period of time.

Market volatility is considered to be a negative parameter which affects your investments while diminishing their values. But, is this the only meaning we should understand? No, volatility must not be meant as a negative trend only, it has a positive importance as well. The term volatility means the probability or the liability of the funds to change frequently with the market moves. This means that if the market is going up and the fund is highly volatile, then your investments tend to grow at a rapid speed. While in the other case if the market falls, the values of your investments tend to reduce at the same pace.

Mutual Fund Advisory

The recent case that we have solved is regarding the same concern. One of our clients had the query that the market is falling continuously and affecting the values of his investment, so should he withdraw the fund now. Our experts recommended a simple ‘NO’. Let’s understand the reason for the same.

The funds recommended by our experts are based on the investment objective and tenure of the investors. So you need to be sure about the same while investing. The investor had a longer tenure and wanted to create wealth for his future requirements, and so we recommended a small- and mid cap fund to him with moderate risk appetite. Due to the market fluctuations, the invested capital started falling in the short term, but it doesn’t mean that the fund is under-performing, as per the nature of the scheme it doesn’t perform well in the short-term duration. Thus, one needs to understand the very nature of the fund and one’s investment plan to fulfil the financial goals within time.

Market volatility is a good thing, if you consider it positively. The mutual fund investments are subject to market risk, but in the long run, they beat all the market trends and perform tremendously. So instead of making quick decisions, it is better to think wisely.

MySIPonline has industry’s expert advisors to help you grab the best market opportunity. Our experts understand your requirements to give you the perfect solution. You must get associated with us right away and invest in the best funds to make all your financial dreams come true.