I purchased 2,500 units each of JM Agri & Infra and Kotak Indo World Infrastructure during the new fund offer period in December 2007. Both have been bad performers. My investments have reduced to half. What should I do?
- Manjeet Yadav
First of all, when you invest at one go and not systematically, you become a hostage to market timing. You say that you invested in December 2007. That was around the peak of the bull run when the Sensex crossed 20,000. In 2008, the markets began going downhill. By December 2008, the Sensex was as low as 8,467. So, you can just imagine the value of your investment. Till today, the market has not touched that high.
To add to it, you invested in two thematic funds. These are highly risky investments. JM Agri & Infra has done pathetically. In fact, you would do well to cut your losses and exit.
Kotak Indo World Infrastructure invests in the infrastructure theme and has a domestic and global exposure. However, the theme has taken a beating but should show some pick up later. You can hold on to it for a while and sell when you make a profit.
This article was originally published on September 17, 2010.
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