I had invested in JM Agri & Infra Fund. How good is it?
This is a thematic fund and has been very disappointing. However, it is a very promising story, but when it will materialize is still unclear.
Its closed-end structure has one disadvantage and that is that you cannot steer away from it. Over the last three years, all the closed-end funds that have been unveiled, have been half-closed-end. Which means that in the beginning, people could invest in it. Subsequently, investing in it was not possible, but if you had to get out, you were allowed to do so. The proviso was that the initial expenditure of the fund would be deducted as exit load from your investment.
So, whatever expenditure was due has already been done. You should, therefore look at this fund objectively by asking whether it is still promising, or not. In the last two years, most of the funds have incurred losses and this fund too shares the same story. The critical thing about this fund for you as an investor is whether you should stay or exit. If it is the only fund you have in your portfolio, then it should not be there. If it is just one of the various funds that you have invested in, and accounts for 10 per cent of the portfolio, then hold on to it. If it is a prominent holding, then too it should not be held on to.