cashing in unit trusts

fredsdad

got £100,000 in a unit trust fund that has done brilliantly in the last 10 months, should i cash it in to a building society account or let it ride, its two thirds of the value of my endowment mortgage which has 8 more years to go.
very scared of getting this wrong

Thrugelmir

My personal view is that there's no harm in taking a profit particularly if markets have moved quickly upwards over a short period of time. Debt only has to be repaid once. Then it's gone.

Not suggesting you sell a 100% either I should add.

kingstreet

Some advisers suggest switching part of your funds into cash each year as you approach the date you'll need the money.

If you are 8 years away, you could remove 12.5% of the funds into a safe haven each year to avoid short-term market dips decimating your funds as you get close to needing them.

Presumably you are invested in equities? How about moving some of the money into lower risk funds, rather than going the whole hog and going into cash altogether?