Hello Readers! 

If you are an investor you might have received many suggestions and tips to manage and continue your investment, in this pandemic situation. If you are a person who is planning to start an investment, then you might have received suggestions on whether you should invest in the current market or not. But if you are an investor and indeed you are close to achieving your long-term goal, then are you advised for what strategies you must follow?

Well, there are basically two aspects of reaching the goal in such scenarios, time and value. Either you might have achieved the amount you earmarked for a particular goal, before the specified time, or it could be that you are close to the time you carved out for the goal.

Here, what is the scene of the market, how hard it is suffering, or what is its value at that time is much less important than the matter that you have achieved your goal or near reaching it, and this event, obviously needs your attention.

Well here are two strategies discussed below that you can follow to manage your investment at this time with minimum risk.

Have You Re-Assessed Your Goal? 

Re-assessing goal is not a big thing but hold good importance. It helps you identify the changes that your goals might have got during the years of your investment. Experts advise the re-assessing of your goals must be scheduled at least 2-3 years before the time fixed for reaching that goal.

Understand it is a simple way. When you start investing for the long-term, where you are still 8-10 years away from reaching your goal, in this scenario re-assessing becomes important because 8-10 years’ time is enough to bring change to your goals.

For example, you might be planning to send your child to foreign for higher studies or college, 10 years later and that’s the long-term goal. However, in the interim, many international colleges may have set up campuses in India itself, negating the need to pursue that goal in the original form.

So, basically re-assessing helps you identify that whether the corpus that you have created is enough to accomplish your goal or you need to let it grow bigger. If you haven’t yet re-assessed the value of the goal, then at least three years before completion, sit with your family and have a conversation on that specific goal. To ensure that the corpus your investment has created is big enough for the goal you have planned for.

Take Your Gains!

Experts say if you have your investment in Equity mutual funds and you have reached your goal corpus before the time, then it's time to allocate your gains to a place where it is exposed to safety and is not at risk.

Suppose you have reached your goal corpus before the time that is your goal is still 2-3 years away to be accomplished, in this situation, it is advised to redeem the amount you need for your goal and reinvest it in something which offers low risk and stable returns.

Following this strategy will have two advantages, first, the money you invest will continue to grow and compound, instead of at a lower rate, and secondly, your capital will no longer be at risk. Well, well, before you execute this strategy, do calculate the taxes that will be applicable to your investments. In this whole process, you will be taxed twice, once at the time you withdraw from equity assets and then again when you finally redeem. The biggest benefit that this strategy ensures is the safety of your capital, which is much more important.

Keep reading for more updates on Mutual Fund Investment!!

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).