Profit booking from long-term equity investments – does it work?
Background: I had written my first financial blogpost on the journey of a 17-year old SIP in Franklin India Prima Fund. The link to this post is included below. https://w2dwealthmanagers.blogspot.com/2020/04/my-sips-17-year-journey-in-franklin.html Many readers commented that it is not wise to stay invested and that one should periodically book profits when the markets were overvalued, or say, when the investment had doubled in value. These comments made me think – should I look at booking profits from my equity investments periodically, even if I do not need the money in the next 10 – 15 years? I therefore decided to do a statistical experiment on another long-standing investment that I had made in the year 2003 and 2004 and see if booking profits in those investments worked! The Investment: I invested a lumpsum amount of ₹ 10,000/- on 27-Feb-03 and ₹ 10,000/- on 23-Feb-04 in Franklin India Taxshield (FIT) for my tax savings investments for FY 2002-03 and 2003-04 respe
