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 But up to what extent and proportion of the investment could be withdrawn.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.

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.

Things to Consider Before You Invest In Paper Assets

Invest In Paper Assets

Paper assets refer to those assets whose representation define ownership of an asset.

Some examples of paper assets can be stocks, currencies, bonds, money market funds, Mutual funds, Insurance plans etc.

It is one of the best way of growing wealth without much stress and which carries a minimal risk of capital loss. Investing in it has become very passive, your funds keeps earning interest while you do regular things, like a high time demanding job be it corporates or own business or a full time home maker. They give returns depending on the amount of capital you invest in it.

Paper assets are generally risk free, with guarantees such as with insurance (against losses if any). This states that there is no probability of losing principle capital. Banks have started keeping these assets as collateral to secure loans.

One can’t deny the fact that stocks are volatile and are subject to crashes and market trends, they are not risk free but expert’s guidance at VSRK stands straight against this volatility and restructure the investments carefully. To give a hand on which paper treasure is better as per one’s financial needs and goals.

VSRK considers following before investing funds in Paper Assets

    1. Everyone has some financial goals and depending upon present saving capacity to the time frame of the goal decides which investment vehicle should be opted.
    2. Check how much one has in hand to make investments, flexible investment plans as Lump sum, Bi-yearly, quarterly and Monthly. 
    3. Each investment avenue has its time frame, the longer the investment, the more interest and returns we can promise as plans are usually subject to compounding.