I invested in a fund for ten years. But now I find that it is not doing well and I need to switch. What should I do with the accumulated amount? Should I switch it to a new fund in lumpsum or again start an SIP?
- Arun
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Once you find that the fund that you chose and have been investing in is not doing well, you should stop your SIP. Not only stop your SIP but also move your money as lumpsum in the new fund, the one which you think is going to be promising from hereon. The whole idea of SIP is that you are able to average your investment in equity. But all your money is already invested in equity. So, you can move all your accumulation in the new fund as a lumpsum. Just be careful about the exit load and the short term or long term capital gains tax. There won't be any substantial long-term capital gains because all of that till January 31, 2018 have been grandfathered.