Should Investors Encash their Gains?

Should Investors Encash their Gains_

A lot of investor have experienced the uptrend in the portfolio and from the recent market rally accessed outstanding gains. Most of the investors are enticed to liquidate them. Let’s read further to evaluate whether this scheme is sound enough or not.

VSRK has a good clientele and few of them keep asking such questions. Recently, a client named Mr. Dheer invested an added amount of Rs 5 lacs from existing savings in equity funds in lump sum during the market bang in March 2020. Alike others, he was advised that the market is low lying and that it would be the propitious time to earn gains in the coming future.

The professionals say when the markets collapse, investors feel congenial in withdrawing from market and holding cash as it gives them a sense of security in the short term. This act of mindset is not intellectual to do so in the long run. It is well said and aptly resembles here, “When the going gets tough, the tough get going.”

Surprisingly, the recovery of the market went shooting within a few time and documented new highs in the immediate past, and the value of investments crossed Rs 8 lacs, giving an annual return of about 64%.

The figures depicts not only numbers but VSRK’s expertise and clients’ joy for the decision made to invest during the market fall. Now, he was confused and wanted to know whether to book profits by redeeming. But up to what extent and proportion of the investment could be withdrawn.

VSRK suggested him that either he can withdraw the money that was invested in stock markets at any moment of the time as no rules are preventing him from doing it. So when the markets fall, instead of thinking of how to get your money out of the stock market, restructure short term equity plans to meet long-term goals.

Conclusion:
Market lows are gut-wrenching for even habituated investors. Whereas equity investing has to be a skillful term plan. Stay invested to reap the benefits with the delta in market conditions for an uptrend. You can visit VSRK to reset your portfolio and earn the best out of the stock market.