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A Tiger's Roar

DSPBR T.I.G.E.R. is not a bad fund, it has just not recovered from the shocks of 2008…

I had invested Rs 20,000 in DSPBR T.I.G.E.R fund in the year 2008, but I am yet to recover my capital as the value of my investments is still negative. Please suggest what to do at this point of market scenario?
- Rezwana Pathan

Launched in May 2004, this fund seeks to generate capital appreciation by investing in equity and equity-related securities that could benefit from ongoing structural changes and economic reforms in the country. But like all infrastructure funds, the fortune of this fund too revolves on the way the sector is faring. The sector has not been as active with economic reforms not pushing for infrastructure as desired, which is reflected in the fund’s recent performance.

Moreover, you were unlucky to pick this fund at the height of the last Bull Run when the markets peaked and then tanked on back of the economic downturn. The fund is not bad; it has returned 10.03 per cent return in the past 5-years, though it is yet to recover from the shocks of 2008 like many other funds. There is a lesson for you from this investment; track the performance of your fund actively; also there is an opportunity loss that you incur by staying invested in a fund that is not turning around. Instead of waiting for this investment to turn around; you should consider investing in the broad equity fund categories such as large-cap and large- and mid-cap funds that have fared better because of the diversity they offer.



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