I’ve been investing in a few diversified equity mutual funds through the SIP route since 2007. I’ve also invested in the Tata Infrastructure fund as well as the Reliance Diversified Power Sector fund. Is there any hope of a revival in these sectors? Should I hold onto these investments or switch over to the diversified category?
-Sandeep Nagrani
We are not very hopeful of a revival. But that apart, we believe that SIP investors should always avoid thematic and sectoral funds. If these are the only two funds in your portfolio, you’ve had a bad start. You should reconcile with your losses and move your investments to diversified equity funds. That would be the best way forward, and it won't even be a compromise because the fund manager of a diversified equity fund will be at the liberty to emphasis sectors like infrastructure and power if they become opportune at some point in time.
This article was originally published on April 19, 2012.
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