Here is the answer to “Is How is long term holding really benefitting”?
I have sold my Parag Parikh long term equity fund’s holding on the 28th of Feb at Rs. 26.65. It was well before the sharp fall due to the pandemic. Nifty was around 11201 at that moment.
The choice was completely mine and did it for a personal requirement.
I was lucky enough that sold everything before the pandemic crisis, it went down up to ~31% from the day I sold.
Honestly, I have a few questions to answers,
Is it a good decision?
Partially Yes, because i sold due to my requirement and not for selling pressure or pandemic.
Does it sustained for a long?
NO
The Fund is up around 64% from the sharp fall.
Secondly, The fund is up above 24% from the day I sold. Does it reasonable?
I would say, “That’s fabulous return” in the current situation.
I would like to share a few take away, What I learned from here
- Selling a fund / Stock due to sharp fall, is not an appropriate option, If you know about the company or fund well.
- Holding for a long period would be meaningful and profitable from ( Experience and Profit ) both.
- Having a strong balance sheet is must.
i could have benefitted from such as sharp recovery if I didn’t sold it.
I believe, All three are not an options to pick any, All three are must & fundamental too.
Last but not least, Do research before buying any stock or Fund at which will help you to hold on any sharp fall that occurs.