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Necessity of an Investing Plan

Investments can generate losses if a proper plan is not in place

I have been investing in the Tata Infrastructure Fund for the last two-and-a-half years. I also am holding some shares that are lying with me for a similar period including Reliance Power, whose stock price has fallen. Should I redeem/sell despite losses?

It is a surprise that Tata Infrastructure, in which you have been invested in for such a long period, is still in a loss. You must check whether you had taken the dividend option or whether there was a dividend that had been announced which you have not received.

However, every investor should invest consistently and try to opt out of a thematic or sector fund.

And speaking about the losses in your big collection of small shares, Reliance Power and others, you should get in touch with an advisor and plan out your equity investments. Firstly, for this, you should always invest in those stocks with which you are familiar, can understand, or have researched. If you do not, then choose a good mutual fund and invest in it consistently.

From what you have indicated, the pattern of your investment is on the market behavior. When it goes up, you invest and after that you get dismayed. A proper plan needs to be implemented. For example, those who had invested in Reliance Power, Tata Infrastructure or even Reliance Natural Resources, in which investors had put in a lot of money in January, 2008, are very much disappointed.

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