However, owing to the recent fall, many investors are regretting not redeeming their investment during the market high.
Now as the Sensex touched 40,509 on 9 October 2020, the NAV for Quant Small Cap was ₹62.05 and for Kotak Small Cap fund, it was ₹88.23.
The nature of the market is to rise with few temporary falls in between,” said Kalpen Parekh, MD & CEO at DSP Mutual Fund.
Redeeming randomly based on market movements , he is making the active investment passive.
When you are nearing your investment goals: Whenever you’re investing, you should have a proper purpose.
For example, if your goal is for 15 years, then you should think of changing your investment strategy from the 10th or 11th year.
When the financial goal changes: It’s not the right approach to chase returns; investment should be made as per one’s financial goal.
When the markets tend to move upwards people forget the importance of asset allocation.