New Delhi, April 1 -- Investors are often advised to buy equity funds and to stay invested for the long term to achieve optimal returns. However, an equally important aspect-knowing when and how to exit-often takes a back seat or is overlooked.

There is no doubt buying quality equity funds and staying invested in them for the long-term will help generate optimum returns. Surprisingly, this may not be enough to achieve and realise these returns. Eventually, it boils down to when and at what levels one exits in the equity markets, which truly decides the trajectory of the returns.

As per historical data, investors who stayed invested over the long term and, sold equity funds during good market conditions at higher levels proved to be more...