Ask Value Research

If an MF is performing worse than its peers but better than its benchmark, should I get out of it?

Dhirendra Kumar says what should be considered about a fund before exiting under such a condition

Transcript: May be yes or maybe not. You should give that fund some time, depending on the track record of the fund manager. If the fund has a track record of 15 years of beating its peers and benchmark, you should give 3-4 years time. The reason is that the fund and the fund manager has seen the ups and lows of the market and it is likely that the fund will bounce back even if it isn't performing well at the moment. However, if the fund has been only 3-4 years old then it is not advisable to stay put for long with such a fund as the fund manager wouldn't have seen many such stages of market cycle.

This article was originally published on May 08, 2017.


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