Pulling out from equity funds: When is it okay and when it isn't?

Moving entirely from equities to cash or direct investing could prove counterproductive

Investors redeemed Rs 12,917 crore from equity mutual funds (MFs) in November, and nearly Rs 23,000 crore has moved out over the past five months.
 

When is it okay to pull money out?
 

One, if you need the money. “Many people have suffered salary cuts and job losses. When people have needs, they tend to pull money out, irrespective of the valuation level,” says Rajeev Thakkar, chief investment officer, PPFAS Mutual Fund.

Two, you may pull money out and put it in a debt fund if your goal is due in a year or so. And three, you may do