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Investing in an aggressive fund

Investments in aggressive funds dive during market lows, but these funds outshine the peers in rising markets...

My investments in Reliance Regular Savings Equity fund have not done well over the last year. Should I exit this fund?
-Lakshmi

At this point, the fund looks bad, but it is a very strong performer. It shows its preferences and performs very strongly in a rising market. So, what we have seen in 2012, a year in which equities did well, this fund handsomely delivered at 46 per cent, beating most other funds in the multi cap category. It was also the fourth best in its category.

So in a struggling market, this fund will struggle more. But if you want an aggressive fund, a fund which shows some great returns, this would be one such fund. Don’t get carried away by last 6 months, 8 months performance, because that is the time when any fund like this fund will go down. It will prove rewarding the moment market turns around.



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