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Opt out of JM Contra

Anand Malgatti is facing huge losses

I invested Rs 21,000 in JM Contra Fund and I am facing huge losses. Please advice whether I must opt out of the fund or remain invested?
-    Anand Malgatti

This fund has the mandate to invest in out-of-favour stocks and tilts towards mid-caps. It has been one of the worst performers in its category. It shed 70.67 per cent during the market crash in 2008. Even during the market recovery this year, it lags behind its peers. For instance, UTI Contra has delivered eight per cent while JM Contra has fallen by almost 50 per cent (1-year return as on June 14, 2009). It would be better to move out of this fund and deploy your money in a more lucrative investment.

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