I have invested in the NFO of Reliance Equity Advantage. It is 40 per cent down now. What should I do? Should I hold it or exit?
Reliance Equity Advantage Fund has done well in its short history of over one year. It aims to invest at least 80 per cent of its assets in the stocks of the S&P CNX Nifty Index. It also seeks to mirror the sector allocation of the index on a monthly basis.
The fund has been able to shed lesser than its benchmark and category. Last year in the market meltdown, it lost 49.16 per cent while the index and category shed 51.79 per cent and 55.08 per cent respectively. Although it does not give the exact benefit of index investing, its mandate makes it a less risky offering. You can remain invested in the fund.