I have been investing in an Infrastructure fund for the past 4 years through SIPs, but I am facing losses of around 40 per cent. Should I exit this fund or stay invested for the long-term? If I stay invested and my investment breaks even in 2 years, should I redeem half of them or the entire amount? Please also tell me the reason for infrastructure funds being in losses.
-Devendra
Four years back, the period of 2007 and 2008 was infrastructure’s peak period. Since then, infrastructure companies have witnessed major fall in their prices. The sector’s outlook has also been bleak. Hence, we would recommend that you sell your infrastructure fund investments. You should invest in a well-performing diversified fund instead. We say this because we don’t see any major change in the performance of this sector.
This article was originally published on March 19, 2012.
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