Posted on September 25, 2009 by Nayab Naseer

A good investor never sticks on with one form of investment. He or she always makes an analysis of the investment based on various factors such as opportunity costs, future potentials of the investment, environmental factors and the like and decides whether to stick on with the investment or migrate to another investment vehicle.

Changing or migrating from one type of investment however comes with its own costs. Selling a property and purchasing another property for instances comes with the costs of registering the sale deed, taxes, costs associated with identifying the new property and the like. Purchasing and selling mutual funds comes with their own entry and exit loads. Similarly most forms of investment have an entry or exit price and ignoring such costs could actually make a seemingly good and profitable move and bad and foolish one. The investor should ensure the profits or the additional returns far surpass such entry and or exit costs.