I have an avid interest in personal finance and recently stumbled upon your site. Your rational approach to investing coupled with a sense of accountability in what you recommend is refreshing in a space usually laden with jargon and inconsistent advice where the expert often conveniently forgets to review the performance of his earlier recommendations. You are doing a commendable job in empowering a personal finance enthusiast
My question is specific to a few stocks I own. Three of my stocks – TCS, Yes bank and Axis bank have done exceedingly well (I bought these during the 2008 economic downturn). I have no immediate financial needs. Should I continue to hold on to these stocks and expect greater returns or sell them and invest in a good fund from your 2016 recommended list? Thanks in advance.
Thanks for your kind words 🙂 First try to understand why and with what expectation you invested in these stocks? I don’t think there is any such specific requirement or expectation (I sensed from your question). Now, whether to continue or discontinue, If the stocks are performing well (well above your expected return), then I don’t think it is wise to come out. The best part in your investment is, you invested in global meltdown which I feel many missed. So continue the stocks as long as they are beating your expected return. But if you have a goal which you feel to accomplish by selling these stocks, then best to come out prior to 6-12 months of that goal. Park that amount in debt funds. So that it will not harm your goal.
Thanks. It makes sense to me. This is assuming that the stocks will continue to grow even in future else I will lose all the profit I made and probably capital too. May I please know your personal view on the growth trend of the Indian economy in next 5 years?
I am long-term equity investor. So I have a positive view. But don’t heed the experts views who appear on media. They are not investors but brokers. So they either suggest you to SELL or BUY, but never HOLD. With proper asset allocation like equity and debt and long term view (5+) years, I always suggest equity the best asset class.
Thanks Basu. I am a long term investor too and your thoughts resonate with mine