Short-Term Mistake

I have a number of funds in my portfolio. However, when I reviewed them recently, there are a few which just seem to be bad performers. They are JM Basic, JM Financial Services Sector, Taurus Discovery and L&T Small Cap, all of which I picked up in 2007. How does one make the decision to keep holding a fund because it may turn around or just sell it? Should I redeem or hold? Is there any possibility of these funds being taken over by some other fund house in the near future? I really would appreciate your advice on the best course of action. - K Modi It's clear that you have made a few glaring, but very common, errors where your investments are concerned. The first is that you selected three of the funds based solely on their short-term performance. You picked a narrow time frame where the performance impressed and you impulsively bought the fund hoping that it would replicate the numbers in the future. A fund may experience short-term euphoric bursts; that does not make

This article was originally published on June 08, 2011.