Gul Teckchandani says If you have redemption you have to liquidate to raise money. All funds are more often than not open ended. The fund manager only does stock selection rightly or wrongly timing is always decided by the investors. When times are bullish they will come into the markets i.e through the funds and when they are gripped with fear they would redeem. The fear is largely due to the prices coming down not because the businesses are doing badly.
People talk about long term investments but are unable to control their own sentiments.
Hence, it is rather unfortunate that funds have to routinely sell down to raise cash in a depressed market with virtually no choice. I also feel grieved and pained by the same. Wish you guys can invest now. Gul Teckchandani says This is just my view, both in the long and short term, the markets will reward from this level. However, if you are a short term investor the risk is always going to be higher for you because instead of trying to call fundamentals you are trying to call prices.