I have invested in HSBC Equity and Kotak 30 funds. But their persistent below-average performance is quiet disappointing. Should I exit these funds, or wait?
Both Kotak 30 and HSBC Equity are diversified equity funds and have been rated 3-star by Value Research. Due to their large cap tilt, they have transformed into conservative offerings. They might not be among the top performers in a rising market, but are likely to fare well during a fall.
While both these funds lagged behind the category average in 2009, they fared well during the falling markets of 2008.
Kotak 30 has managed to beat its category average every single year since 2005, barring 2009. On the other hand, HSBC has been an average player in the category. These funds are best suited for investors who do not want to undertake much risk. Such funds can be a good proposition in the long run.