Against the backdrop of large-cap funds struggling to beat the index, Dhirendra Kumar advises this investor on what to do about his funds
For the last three years, I have been investing in SBI Bluechip and Aditya Birla Sun Life (ABSL) Frontline Equity through SIPs. Now, both the funds are not doing well. Should I stop my SIPs in them?
After doing exceptionally well, both these large-cap funds, especially Aditya Birla Sun Life Frontline Equity fund, are having a difficult year. However, for the past two-three years, actively managed large-cap funds generally have been facing difficulty to beat the index owing to their higher expense ratio. Hence, index funds are emerging as a strong alternative to active large-cap funds.
However, I believe that you should give both these funds another six-month time and then, consider switching all your money if there is no improvement in their performance.