Should I sell and come back later?

QUESTION FROM POLICYHOLDER

I would like to know your opinion that if a ILP (using CPF OA) are making money say after 3 years, would it be advisable to sell it off and put the money back to CPF and wait for another opportunity or just wait for it to keep rolling?

REPLY

It is usually quite difficult to time the market.

If you are really sure that the market is "too high" and you wish to take profit, then it is okay.

But, if you are wrong in selling out, you may have to re-invest at a higher price, and you miss out on a significant portion of the gain.

Normally, I prefer to invest for 10 or 20 years and avoid taking decisions at shorter intervals.