Make your own Rules

 Query: Sir you said if your profolio is good redeem them in alphabatic order.should we redeem one alphabet one year & another next year or redeem A completely 1st then go to B.

Reply:

Good morning 

We are the first generation of mass investors, and the children of liberalized India .

So who will set the rules for us? 

Our parents provided the land, but we sowed the seeds and now we will see our trees growing, and very soon the overhanging fruits will be there.

Just imagine your Orchard will have different trees for different fruits and some just for shade .

When the time will come, you will yourself be able to select which ones to the redeem .

Each of the fund will be a portfolio by itself, and you will be easily be able to decide on your own .

Everyone’s story and situation would be different .

I will give a very good example here .

Generally, I was redeeming the funds which were not performing very well for past three years and one of the funds which came up quite high by looking at the XIRR was Birla SL  Frontline equity with a return of about 12% over the last 13 -15 years.

However, this year for the purpose of offsetting my cost of building a house  against capital gains I had to sell off some funds when I was doing it from the DSP small cap which, in my opinion would have been most volatile and expected to fall during the downturn, which I was expecting last year.

But a meeting with my CA revealed that in order to take the maximum benefit, I need to look at the gross returns rather than the percentage.

In this category again, the fund which came up was ABSL FL and ICICI which have actually been multi baggers over last 3 decades.

So different situations will require different response from you, but one thing is for sure that you will be in a sweet spot.