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Reliance Power Fund sticks to a theme, but has delivered returns

I have invested in Reliance Diversified Power Sector Fund - Retail Plan. Should I stay invested?

This fund is a very good fund, but it is concentrated within the confines of a particular theme. It is a sectoral fund that invests in shares of power companies only. Whatever money you and others have invested in this fund is utilized in buying the shares of power companies only - power companies have been doing very well.

Though power sector reforms have not been undertaken as yet (on whose basis this fund was launched), but it has been giving good returns and is a big fund. In the last two-three years, this fund has proved to be very rewarding for investors. Reliance Diversified Power Sector Fund is amongst those funds that have given the most returns. It should stay good in the coming times too.

However, I feel that for a common investor, this fund would not be a good investment. If you just have one fund, then it is the fund that you should have. You can remain invested in it, but try to diversify, since it is a concentrated fund.

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