I had invested in Reliance Diversified Power Sector and Sundaram Energy Opportunities in January 2008. The NAVs have not reached the level at which I had invested. Should I switch out of these funds?
These funds have been highly disappointing for investors who came in large numbers when this was the only theme that was doing well. If these funds are a small part of your portfolio, if they're complimenting an otherwise diversified portfolio, you can hold on for now. But if these are the only funds you're investing in or if they're a significant part of your portfolio, then it is time to move to diversified vehicles like large- and mid-cap funds or multi-cap funds.