I have invested Rs 1.7 lakh in a Sundaram Capex Opportunities fund in 2010. The performance of this fund has been very disappointing. I am presently at loss in this fund. Should I redeem my units or hold on?
- Anil Kumar
This fund was erstwhile Sundaram BNP Paribas Capex Opportunities fund. Its investment mandate is like that of an infrastructure fund. It invests in companies that are supposed to benefit from capital expenditure. Most of these funds were launched before 2008, and since then, the weather has changed completely. The underlying companies where they're supposed to invest have come under a cloud, and the bad weather is likely to continue as well. Investors shouldn't be holding such thematic funds in the first place. The first goal of investing in a mutual fund is to diversify, and the investments should be made via SIPs. We would suggest that square up your losses and take your money out of this fund, and choose a diversified fund to invest in.
This article was originally published on January 25, 2013.
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