Churning of investments
Will not help, if you have invested for a lesser period, like less than a year or have got the dividend just around 80 days before (dividend stripping).
Two things you have to keep in mind
(1) Identify the bad investment, which are performing lesser than the best market interest rate & inflation.
(2) Identify the consistent performance investments and fund house.
Even if you need money, if you are having 6 months monthly expense as the buffer, dig into that, for a very short term, like a month - cash balances.
Then when the market is upbeat, move that equivalent amount from the dud investments.
If you had made some capital gains in that particular financial year, it makes to take the loss, and adjust it to that extent only.
What do you loose by churning?
Load costs at 2.25%
STT on the sale of the old investments - not accounted on anything 0.25%
Capital gains, short term if less than 365 days
Mental stress.
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