When To Sell Mutual Funds

Mutual funds can be an excellent investment for average people because they offer professional management and fewer risks. Unfortunately these vehicles have risks and can lose money. Many people have seen a large portion of their retirement savings disappear because they did not know when to sell their mutual funds.

Unfortunately there is no easy answer to the question of when to sell shares in a fund. Every fund and every investor is different but there are certain situations in which it will be advantageous to sell funds. Any investor should have no problem learning when to spot such situation and take advantage of them.

When the Fund is No Longer Making Money
The first and most obvious time to sell your shares is when the fund is no longer making money for you. An investor should be able to tell this by monitoring the fund's performance and by comparing that performance with the fees.

It is fairly easy to track the performance of most funds through free internet portals such as Google Finance and Yahoo Finance. You can also track funds through financial newspapers such as The Wall Street Journal and their websites. Simply look to see if the fund is performing to your expectations and track returns over monthly and yearly timeframes. You do not need to monitor your funds everyday but you should check them about once a month.

You can tell if the fund is making money by figuring out its costs and fees which will be listed in the fund prospectus. Simply write down all the costs and fees and add them up and subtract them from the return you are getting on the fund. If the fees and costs exceed the return then you are not making money and you should sell the fund.

When it is not Achieving Your Investment Objectives
Before you invest money you should sit down and figure out what your investment objectives are. An example of such an objective could be to generate a rate of return that exceeds inflation or to increase my retirement savings by 5% a year.

You should take a look at those objectives every year then revisit your investments. You should sit down examine the investments and see if they are helping you meet your objectives. Look at mutual funds to see if their returns are meeting your goals. If they are not you should sell them and look for others that are. If a fund is not generating enough additional income to meet your objectives you should definitely think of selling it.

When a Fund's Return can not Beat the Rate of Inflation
The standard rate of inflation is around 5% therefore any investment needs a return of at least 6% to beat it. A vehicle like a mutual fund should have a rate of return around 10% in order to make money in spite of inflation. Always check funds to see if they are making such a return. If they are not you should sell them and look elsewhere.

Something to remember is that mutual funds are a fairly high risk investment. The gain you are taking you should justify the risk you are taking. If the return is not around 10%, the risks you are taking and the fees you are paying are probably not worth it.

Steven Hart is a freelance writer and a Financial Advisor from Cary, IL. He writes about Annuity topics like Annuity Definition, Annuity Rate, and Best Annuity Rates.

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Online Mutual Fund Investment

Investing in mutual funds has been extremely profitable for the corporate professionals and business entrepreneurs who get to reap numerous benefits. It has been their preferred choice since time immemorial. This is one form of investment that promises to give huge profits on even small value assets. The increased benefits that can be reaped and the surplus amount of money that can be made makes investing in online mutual funds even more popular. Though involving complex paper work and intense detailing when was done traditionally, with the advent of the advanced IT technology, online dealings in mutual funds have become extremely common.

From the point of view of business and commercial value, mutual funds are given extreme significance. The importance of investing in online funds is known to everyone. Online investment is most convenient way of investing. This is the reason for the increasing demand for online fund investment in India. Firstly, it saves one from the long procedures for applying offline. The application processes on the net are hassle-free. One simply requires filling in a form that can be filled easily without any guidance. Adding to the convenience, the form can be immediately submitted without waiting in long lines outside the submission office. Dealing in mutual fund involves massive money transaction and doing it online simplifies the entire process. Money transfer online can be easily followed even by an amateur investor in the market. There is also no requirement of cash for transferring money.

One can get all the required information about the new schemes and investment plans on the net. Online investments facilitate easy and simple transactions without any complex procedures involved. Thus, the investor can handle his investment account all by himself by understanding the procedures, comparing schemes and making money transactions all online! However, one can come across numerous stock brokers in India who can provide complete guidance for both online and offline investments. Besides, mutual funds, online stock trading is also very popular amongst the ambitious individuals. The investing person has 24X7 access to the trading account thus can make changes according to his requirements. Stock brokers on the other assist them with necessary information about the investments procedures and also guide them in choosing the right plans suiting their needs and requirements. By sharing their experience and expertise, the stock brokers provide great help to the investors in reaping maximum benefits out of their investments. Be it online share trading or investing in mutual funds, rationality and intelligence work best in making massive money in the dynamic market of online investments!

Shomik Gupta is an expert content writer, who provide articles for online mutual fund investment. To know more about the Online trading in India Visit Naviamarkets

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