I had invested around Rs 40,000 in Sundaram Energy Opportunities when it was launched in 2007-2008. The fund however has not performed in the past three years and I have not even recovered my investment in it. Should I get out of this mutual fund with loss or stay invested?
- Adway Mardikar
You had invested in the NFO of a thematic fund that invests in energy and energy-related companies. Such funds are risky and also do not have a performance history to look into before investing. Moreover, you invested at a time when the markets were on the rise and many new funds were being launched.
Yes, the fund has fared badly, more so when the markets are today at old highs and staring at new highs. While we can empathize with your situation, the way out is for you to exit this fund. You would be better of cutting your losses now and investing in a consistently better performing fund.
This article was originally published on November 22, 2010.
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