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Questionable Performance

Morgan Stanley is an old fund, but it has been a category laggard

I have 500 units of Morgan Stanley Growth Fund purchased at Rs 8 per unit. They have not even given good dividends. Should I hold on to this investment?
-    Sunil Gupta

A fund pays out dividends out of its distributable surplus, i.e. the NAV above its face value. Growth in a fund’s NAV does not necessitate dividend payouts by the fund.

Morgan Stanley Growth Fund, although an old fund, has not been a good performer in its category. You may consider other large-cap diversified equity funds that have been good performers over the years. You can choose from DWS Alpha Equity, HDFC Top 200, DSPBR Top 100, Franklin India Prima Plus and Magnum Contra.

 

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