Profit Booking: Smart Move or Silent Wealth Killer? Profit booking simply means selling investments when they’ve made gains. It can protect you during market volatility—but done too early or too often, it can quietly rob you of long-term wealth. Let’s say you bought a mutual fund two years ago. It’s up 40%. You’re thrilled. You think, “Let me lock in profits before the market falls!” So you hit redeem. That’s profit booking —selling your investment to realize gains. And hey, it feels good, right? You made money. You "played it safe." But here’s the thing: Is that really the smart move? Or did you just slow down your own wealth journey without realizing it? 📌 What Is Profit Booking? Profit booking is when you sell all or part of an investment to take home the gains you've made. In equity or mutual funds, it often happens: After a sharp market rally When there's fear of a correction Or simply because your fund shows “green” and you...