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Give Funds Time

Six months is too short a time frame to reflect on a fund’s performance & take investment decisions…

My investments in Magnum Balanced and Canara Robeco F.O.R.C.E fund show negative returns for the past six months. Should I redeem my investments in these funds or switch to some other fund?- Narasimha Murthy

Fund Scheme  Category  Rating  3-yrs ret (%)  5- yrs ret (%)
Canara Robeco F.O.R.C.E Equity: Others Not Rated NA NA
Magnum Balanced Hybrid: Equity-oriented ** 10.87 12.55
Return as on July 25, 2011, Rating as on June, 2011
Six months is too short a time frame to reflect on a fund’s performance. Magnum Balanced is an equity-oriented hybrid fund which has not been the best faring fund in its category and you could have selected a better fund such as HDFC Balanced or HDFC Prudence. Canara Robeco F.O.R.C.E is a relatively new fund which is less than two years old and is risky because it is a thematic fund that invests incompanies in the Finance, Retail and Entertainment sectors. What you need to ask yourself is why you invested in these funds in the first place? What did you expect from these investments and what time frame did you look at when considering investing in them? Your decision to redeem or switch investments should be based on whether the investments are progressing towards your financial goals and are in line with your expectations.

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