In his detailed video “Profits in SIPs Book कब और कैसे करें?”, Pushkar Raj Thakur breaks down one of the most common investor doubts:
- When should I book profits in my SIP?
- What’s the right strategy to ensure maximum returns without regret?
If you’ve invested in Mutual Funds or ETFs through SIPs, this guide will help you avoid mistakes, lock in gains wisely, and maintain long-term wealth growth.
1. Why Profit Booking Matters in SIP Investing
Pushkar Raj Thakur explains that many investors assume “SIP means forever”—so they keep investing blindly without any exit plan.
While SIPs are great for disciplined investing, you still need a clear strategy to book profits.
Reasons for profit booking:
- Markets are cyclical. After big bull runs, valuations can become stretched.
- Locking in gains reduces risk of market crashes erasing your profits.
- You can rebalance your portfolio or use profits for goals.
2. When Should You Book Profits in Mutual Fund or ETF SIPs?
Pushkar shares a smart, balanced approach—not timing markets blindly but using clear indicators:
Valuation Signals:
- High PE ratios in equity markets indicate overheating.
- Compare historical averages—if valuations are 30–40% above average, it’s time to get cautious.
Goal-Based Investing:
- If your goal is near (e.g., child’s education, home down payment in 1–2 years), start profit booking.
- Protect your corpus from sudden market falls.
Asset Allocation Drift:
- If your equity allocation has grown too much vs. debt, rebalance by booking some profit.
- This keeps risk in check.
Pushkar emphasizes: Don’t panic sell in corrections. Profit booking is planned, not emotional.
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3. How to Book Profit – Best Strategy for SIP Investors
Simply stopping your SIP is not enough. Pushkar explains the right methods:
Systematic Transfer Plan (STP):
- Gradually shift profits from equity funds to debt funds.
- Reduces timing risk.
- Best for moving profits when markets are high.
Partial Redemption:
- Don’t exit fully. Sell only the profit portion.
- Keeps the original investment growing.
Rebalancing:
- Once or twice a year, check your asset allocation.
- Move excess equity gains to safer assets.
Goal-Linked Exit:
- Align redemptions with your planned goals.
- Avoid last-minute panic when you need funds.
4. Common Mistakes to Avoid
Pushkar warns investors about typical errors:
- Stopping SIPs completely during market highs.
- Selling everything in panic during market dips.
- Ignoring rebalancing for years.
- Not tracking goals, leading to rushed exits.
Wealthy investors plan their exits as carefully as their entries.
Final Takeaway
Pushkar Raj Thakur’s advice is clear: SIP is a fantastic tool for wealth creation, but without a profit booking plan, you risk losing hard-earned gains in market corrections.
- Have clear goals.
- Use valuation cues.
- Book profits systematically.
- Rebalance regularly.
This is how smart investors grow wealth steadily while protecting it.
For step-by-step investing guides, expert mutual fund recommendations, and profit-booking strategies tailored to Indian markets, visit Investment Marg. For broader personal finance, career, and lifestyle tips, explore InkSpireDaily.
FAQs:
Q1. Should I stop my SIP when markets are high?
No. Don’t stop your SIP. Instead, use STP or partial redemptions to book profits gradually.
Q2. How often should I review my portfolio?
At least once a year. For serious goals, review twice a year to adjust for market moves.
Q3. Is profit booking only for equity funds?
Mostly yes. Debt funds have lower volatility and don’t need aggressive profit booking.
Q4. Can I book profits from ETFs the same way?
Yes. You can sell ETF units partially or use STP if the platform allows.
Q5. What’s the biggest mistake in profit booking?
Doing it emotionally—selling everything in fear or greed. Always follow a planned strategy.
Credits to : PushkarRajThakurOfficial
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