Is it a good time to redeem investment from a pharma mutual fund or should I hold?
- Amit Kanthal
My suggestion would be, that if it is just 10 per cent of your total investment, hold on. If it has become more, then pare your position. And if it was just an opportunistic thing which has worked out nicely, then take your money out.
Pharma funds are good to have but it may not be desirable if you have an otherwise well-diversified portfolio that also has meaningful allocation to pharma, maybe 10-15 per cent. Look at your other investments and then decide accordingly. If you have other investments that are well diversified, you should have a small allocation to pharma, if at all. But most investors can do without having a sectoral fund in the portfolio.