I had invested in the Sundaram Energy Opportunities fund during its NFO period. However, since then, the fund’s NAV hasn’t seen any rise. Should I switch over from it and invest in some other mutual fund?
-Saket
Sundaram Energy Opportunities is a sector fund, which had the premise of investing in companies that used captive fuel as a power-generating source. However, the fund hasn’t been able to justify its investment premise. Ordinarily, a new investor shouldn’t invest in a sectoral or thematic fund. Such funds witness a high amount of ups & downs, which is why ordinary investors should invest in diversified funds. Hence, we would suggest that you redeem your investments in this fund and invest systematically in a well-performing diversified mutual fund.
This article was originally published on March 07, 2012.
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