Bangalore: People sometimes fall into complacency and don't make much movement on their investments. Like buying, selling at the right time is also integral to making a profit. Here are a few reasons to sell from Morningstar.in, which will help you decide how and when to dispose of your investment.

1. Your Portfolio Needs Rebalancing

A portfolio may cover many areas of risk, geographies, size of companies, Growth Scale Values or the Price-to-Earnings (P/E) ratios, etc. You will need to watch out for companies making business decisions that put them in a completely different class of risk or a sector not in your approved list.

When some asset classes within your portfolio grow faster than the others, the percentage gets skewed. To avoid heavier risks especially when you did not intend to expose risk to say stocks, it might be wiser to sell those stocks and re-invest into the other safety investments like mutual funds and bonds so as to protect your money when the market tanks.