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Hold onto HDFC Top 200

Don’t redeem HDFC Top 200 on the basis of its recent underperformance. Give it some more time…

I have been investing Rs 5,000 in HDFC Top 200 for the past 3 years via SIPs. This fund hasn't been performing well. Should I stop investing in it?
- Praveen

While HDFC Top 200 has been a well-performing fund, it hasn't done well in the past one year. However, this drop in performance cannot be said to be extremely disappointing. If you want to redeem your investments, you should be aware that for investments that are less than a year old, you will have to bear an exit load of 1 per cent. But, we would suggest that you don't evaluate a good fund's performance on the basis of an interim period of underperformance. Give the fund some more time, and look to redeem only if its relative performance keeps disappointing.



This article was originally published on August 24, 2012.

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