I bought Tata Indo Global Infrastructure Fund in its NFO. Its current NAV is 8.56. Should I hold it further after 3 years?
-Bose Debabrata
This is a 2-star fund. This fund promises to provide wealth creation opportunities through investment in the infrastructure sector in India and other countries. This fund was launched in September 2007 as a 3-year closed-end fund and is now an open-end fund. The fund’s mandate is to invest in infrastructure theme in India and globally, with foreign equity investment up to 35 per cent, with the remaining investments in Indian equity. However, since launch, the infrastructure theme has been unimpressive and the fund earned -8.3 per cent over the past three years. Needless to say, the performance has been disappointing. You will be better exiting this fund. There is a lesson for you from this investment; enter a thematic or sector fund only if there is a compelling reason to be in it or there is an imbalance in your overall portfolio creating a need to focus thinly into this space. Else, you will be better of investing in broad equity funds.
This article was originally published on December 23, 2010.
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