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In a Coma

SBI Magnum COMMA hasn’t done well in recent years. Move your investments to a diversified fund…

I invested in the SBI Magnum COMMA fund when it was launched. At first it performed well, but it hasn’t been delivered in the past few years. Should I redeem?
-Nishant

SBI Magnum COMMA invests in companies that deal in commodities, which are cyclical by nature. The fund did well in its initial years, but has underperformed in the volatile markets. The fund isn't an ideal investment vehicle for most retail investors, especially if it is the only fund that you hold.
Your long-term investments should be in diversified equity funds. You should move your investments from this fund to other SBI funds like SBI Magnum Emerging Businesses, SBI Contra or SBI Magnum Equity

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This article was originally published on February 11, 2013.

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