A much more appropriate way to say this – rebalance . But that doesn’t catch the eyeballs. So “Booking Gains” it is. At least the title!!! So why rebalance, err, correction – book gains? I can think of following reasons: - Reducing risk, especially in case of catastrophic equity market fall. You have been investing in equity funds for real long time and have built sizeable “unrealized” gains. Some black swan event happens. Recall market behaviour during Covid era - down nearly 30% in one month!!!. It is given that good part of “unrealized gains” will be wiped off in case any other black swan event happens in future. It may come back quickly, or it may take a while to recover. You may start doubting the equity markets, or your investing acumen. Taking out some gains when things are going good will be of great help in taking in any severe market downturn stoically . Essentially, it will be much easier to say - “this too shall pass...