Ask ET Mutual Funds: Should I book profits now?

I am 30 years old. My SIP in ICICI Top 100 Fund- Growth is ending in March 2017 (started three years back). I have invested Rs 55,000 and the current valuation is Rs 63,800. I am getting 15.78 per cent XIRR returns. Should I hold the investment or book profit? The goal behind investment was to earn more than bank FDs. I don’t need this money right now. Also, if I book profits then where should I invest this money for the coming two years?

-- Vinit Karad

Darshan Parekh, Certified Financial Planner at Life N More Financial Planning Services, responds:

Ideally, you should be looking at allocating your money in debt and equity. Getting good returns on your earlier SIP does not mean that it will continue to do so. However, if you need the money after two years, you could look at investing the money in ICICI Prudential Equity Income Fund and Birla Sun Life Balanced Advantage Fund. If you need the money after two years, you should book profits, and invest in these two funds to reduce risk.



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