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A thematic player will do well when the sector outperforms

I have invested Rs 1 lakh in Reliance Diversified Power Sector Fund. Its value has come down to Rs 74,000. What is the future outlook of this fund? Should I stay invested or redeem?
-    Sanjay Pant

Reliance Diversified Power fund invests in power stocks and has spread into other energy sectors as well. It has been performing well in the past but it is to be noted that it is a sector fund. It will do well only when the sector outperforms. Hence, it is a risky offering. It is not suitable to be a core holding of one’s portfolio. One should have only a small allocation to such a fund. The fund still holds promise but do not get overloaded.

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