I had invested Rs 1 lakh in the Pramerica Dynamic fund in December 2010. The current value of my investments is around Rs 91,000. And at the time of investment, it was told the fund would adopt a DART method. But now with losses of about 9 per cent, I want to know whether to continue in this fund or not. Will this DART method work in India?
-SampathPramerica Dynamic is an asset allocation fund. This fund can be fully invested into equities or substantially into fixed income, depending on the market scenario. The fund uses the DART model, which drives its asset allocation. This model hasn’t worked out well, which could be because of the qualitative inputs that are a part of it. But since the fund doesn’t have a long track record, it was launched in December 2010 and 15 months is not a period long enough to gauge its performance, you can give it more time. However, there are better asset allocation funds with a more credible track record as well. FT India Dynamic PE Ratio FoF Fund is the tiger in this category and has done brilliantly enough to be considered.
This article was originally published on May 07, 2012.
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