While directly trading in equity i.e. bypassing mutual fund, a common strategy is to book a profit when market is up and accumulate when market is down.
Mutual funds buy and sell in bulk. But, does they follow same strategy? Does mutual funds sell (to book profit) when market is up?
I do not think so; my guess just. Because, then there will be an issue what to do with the balance money? Mutual funds just cannot hold the un-invested money. Hybrid funds may do this though.
My question is about both Equity funds and Hybrid (Equity + Debt) funds. I guess answer for these two will be different.
I am not asking about ETF, ELSS, Tax Saving etc.