I am investing Rs 5,000 through SIPs in Reliance Infrastructure fund since December 2009. The current value of my investments is lower than what I had invested. What strategy should I now adopt?- Sanjay Ghosh
This is an infrastructure fund that invests in stocks of infrastructure companies and companies indirectly related to the infrastructure sector. The fund has returned negative 20 per cent in the past one year, which is poor performance. The fact that the infrastructure theme has not played as anticipated has added to the poor performance. These funds are risky for the narrow investment mandate that they have and should be invested in only when one already has a well diversified fund portfolio and finds a portfolio imbalance which this theme or sector fulfils.
This fund has been faring badly over time and you should make an exit. You can learn a lesson from this experience; regularly track the performance of your funds, this way you can note the dip in their performance in comparison to the benchmark and its peers. If a fund is continuously lagging in performance and losing on the star ratings, it is wiser to head for the exit.
This article was originally published on August 04, 2011.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
