Cut your losses and start fresh with systematic investment
17-Jan-2011 •Research Desk
My investment of Rs 50,000 in Sundaram Select Focus has dropped considerably in value since 2007. Should I remain invested, or book a loss and exit?
- Rajesh Vaidya
This large-cap fund invests in very few select stocks and was a great performer in 2006 and 2007, which would have been reason for you to invest in this fund. However, it has been living on past glory for the past three years and going down in performance regularly. Since March 2009, when the markets picked up, this fund has not managed to catch up with the benchmark or the category average.
By staying invested in this fund you are losing out on opportunities to make gains through better options. There is a lesson for you from this experience; you should invest regularly through systematic investment plans and monitor the performance of your investments. This way, if the fund is under-performing; you will get to know of the poor performance early on and be able to make the necessary course correction. We suggest you exit this fund and look for better performing consistent funds.