I’ve invested Rs 10,000 in the dividend option of IDFC Equity - Plan A. Should I hold onto this investment or sell it and invest in another mutual fund? My aim is to generate income on a long-term basis, after 10-15 years.
-Manoj Kumar
IDFC Equity is a fairly average large-cap fund. It is not a disappointing fund, but there is nothing extraordinary about it. When we map the fund’s NAV with the Nifty, they match precisely. So, it’s not the finest choice if one is investing for the long run. An actively managed fund should beat the index by some margin. We would suggest you to switch to some other large-cap fund or settle with an index fund that has lower expenses.
This article was originally published on May 22, 2012.
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