Magnum Contra Disappoints | Value Research The fund's performance hasn't been impressive enough to be a core holding…
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Magnum Contra Disappoints

The fund's performance hasn't been impressive enough to be a core holding…

I have invested in Magnum Contra growth fund for the past 2 years. My financial advisor is asking me to continue for the same fund for further investment. Should I continue to invest as my return on investment is zero
R P Lakshmi

This fund scheme aims to invest in undervalued stocks which are out of favour but have the potential to show attractive growth in the long-term. A multi-cap fund, its performance has not been as impressive as that of its better performing peers. Even two years ago when you invested in this fund it was not a top performer in its category and its performance since you bought it has not been impressive.

A good way to select funds is by going with the Value Research fund rating, which is a composite measure of both returns and risk. This single measure combines the Value Research Fund Risk Grade and the Value Research Fund Return Grade to give an indication of a funds risk-adjusted return. A 5-star rated fund is a good bet compared to a 2-star rated fund. The lesson for you is to go by this indication than blindly following what your financial advisor recommends. Moreover, every fund has a role to play in your portfolio; you should base your investments on the need for a fund in the portfolio than going by random selection. Make sure you track the performance of your investments regularly to effect any changes that may be needed if the fund is not performing.




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