Money Loss in Equities, might loose 20k if sold?

India
December 6, 2010 12:09am CST
Hi Friends, I have invested 85k approx in equities and current value of my investment is approxmately 65k. That way I can say, unrealized loss is 20k, till now I have booked good profit however there are some equities bought long back before recession and they are yet to recover. I might have to sell all the securities for some money requirement in coming months. If that happens and market is similar, I will book 20K loss . Do you invest in equities? Did you book loss/profit in the past? Thank You.
1 response
vanny
@vandana7 (102698)
• India
6 Dec 10
Hi Ajay, how are you doing? Yes, I invest in equities. :) Both directly, and through mutual funds. Directly, I make some loss he he. But no sweat in the long run they give me more than what I deserve. :) I am a long term investor. So I kind of fill it shut it forget it. If I were to look up at my portfolio everyday, I might be disappointed. But over a period, of say 7 years, it has given me at the rate of 24 percent per annum, so I am ok with that because it is tax free untill I liquidate it. Personally, I would advise - fill it shut it forget it - subject to your portfolio of course. When you book profits, you should consolidate towards blue chips, and when you book losses, you need to move more towards midcaps, and small caps and take a little risk by spreading the portfolio. That is the rule I learnt, and it worked for me. I have about 15 lakhs in it. Doesnt pay me enough dividend though. :(
1 person likes this
AjaySinghBaghel
@AjaySinghBaghel (5506)
• India
7 Dec 10
Hi Vandana, I am doing good and hope you are doing great. Long term investment is always good and I tried to maintain that to the possible extend. All Mid cap shares in my portfolio are down and trying to sell them from long back. 24% return is good, till now overall I have booked good profit but if I look at my portfolio, Feel bad about it. As you said, I will not look at my portfolio everyday. so the MANTRA is Fill It, Shut It & Forget it. Thank you for sharing and suggesting.
vanny
@vandana7 (102698)
• India
8 Dec 10
Consolidate into blue chips and dont look at them again. It does work 24 percent compounded. Franklin Templeton Tax Shield also gives that much. You have a wider choice with ETFs now. Invest some in ETF (gold, silver, whatever)