I had invested Rs 60,000 in JM Basic fund when the NAV was Rs 25; now it is only going down. Should I hold this portfolio or exit with loss?- Ruchi
JM Basic is a thematic fund that aims to invest in the energy and petrochemical sector, power generation and distribution that constitute companies in the basic industry sector. One can understand the loss that you are facing with your investment in this fund which has been faring poorly for some time now. There are three lessons that you can learn from this investment; invest regularly through SIPs, understand the risks involved when investing in a thematic fund and finally you should track the performance of your investments at least once a year to assess its progress.
You should exit this fund, cut your losses and invest in funds that have provided consistent returns, have a performance history and track record. Select funds that are likely to give stable returns and avoid investing in lump sum and choose the SIP route instead.