I hold Sundaram Capex Opportunities and ICICI Prudential Infrastructure for over three years. I bought these funds because of my belief in the infrastructure story. But both these funds have belied all expectations and have been poor performers. Should I hold on to these funds or exit?
- D. Senthil Kumar
Sundaram Capex Opportunities invests in companies in the capital goods sector and ICICI Prudential Infrastructure is an infrastructure fund. Both these funds are thematic and investing in such funds is risky. The bull run between 2006 and 2007 was driven by the infrastructure theme, however, once the markets tanked in 2008, the theme lost its charm and has been out of favour ever since.
Your belief in the theme has not resulted in expected returns. You should not be emotionally attached with investments, which is a big risk when investing. 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.