I have invested in a highly-rated fund, but after 5 years of investment, the fund's rating has been downgraded. What are my options now? My investment horizon is a 15 years.
- Prabhat Patel
Rating is only one of the criteria that are to be used to select a fund. Use the rating to review a fund; be watchful if the fund has slipped in its rating. A rating downgrade certainly means that the fund has been doing poorly on a relative basis, but it doesn't necessarily mean that you should immediately sell the fund. A fund can have an interim period of underperformance. Think about exiting the fund only if its rating keeps slipping.