I had invested in the NFO of a Reliance Natural Resources fund in 2007. At that time, the fund’s NAV was Rs 10, but it fell down after that. To square up my losses, I invested again in the fund when the markets fell in 2008. So far, I have invested Rs 6,000 in the fund and the value of my investments is around Rs 6,000 only. Should I hold onto my investment or sell it? -Naresh
This fund had come out in January 2008 when the markets were at their peak, and the markets haven’t really recovered after the fall right after the launch of this fund. For ordinary investors, it is important to stay away from such thematic funds. You should invest regularly in diversified mutual funds. Hence, we would recommend that you redeem your investments from this fund and invest in a more diverse vehicle.
This article was originally published on July 25, 2012.
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