I have been investing in HDFC Top 200 Fund via SIP of ₹5000 since 2011. The fund has been underperforming for quiet some time. Can you please tell me whether I should continue my SIP or stop it. Also, if I exit, what should I do with the corpus I have already accumulated with this fund.
- Abhishek Gupta
It is true that the fund has disappointed in the last five to six months. But six-months of underperformance is not a good enough reason to exit a fund with an impressive record of 20 years. For example, the fund is the top performer in the large cap category with a 10-year return of over 18 per cent. You should continue to hold on it, but do keep an eye for consistent under-performance for some more time. Do remember that the fund has come back strongly after lean periods in the past and the fund manger who has been managing the fund for a long period has been a contrarian when it comes to taking a broad market view. He has been proven right repeatedly in the past.
This article was originally published on August 07, 2015.
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