I had purchased 118 units of Reliance Pharma (G) at the rate of Rs 39. It has grown to just Rs 42 while Reliance Growth (G) has given 10% returns. Should I hold on or transfer my units to Reliance Growth?
- Noel DSouza
Healthy evaluation of equity funds cannot be made in a very short span of time. Reliance Pharma moved from Rs 39 to Rs 42 in less than a month (end-November 2009 to mid-December 2009).
Moreover, the two funds, Reliance Pharma and Reliance Growth are entirely different funds and will serve different purposes in a portfolio. While the former will be beneficial when taking an additional exposure to the pharmaceuticals sector, the latter is an aggressive diversified equity fund.
Thematic/Sector funds benefit when you deliberately want to take additional exposure to a sector. If you do not wish to have a separate fund for the pharma sector, switch to Reliance Growth.
On a closing note, we suggest that you do not let thematic and aggressive funds together command more than 20-30 per cent of the total investment value. This will ensure essential stability to your portfolio.
This article was originally published on April 08, 2010.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
