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How Portfolio Churn Hurts...
Many a times, for various reasons, you are tempted to shift your investments from one fund to another. While doing so you ignore one important fact – every redemption and subsequent reinvestment costs you in terms of either exit loads or entry loads or both. In this Quick Calc, we help you quantify this loss from ‘churning’.
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* In Option B, it is assumed that the portfolio is churned once every year. Tax implications arise every time you churn. This has not been considered while calculating the return. |
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