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Q.

I have invested in Tata Indo-Global Infrastructure Fund (growth) in September 2007. Its NAV today is only Rs 8.50 as against the issue price of Rs 10. Is it worth holding on to this? Please advise.

Asked by Good Citizen, 24 Sep '10 11:06 am
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Answers (2)

 
1.

Sad. But, you would understand the importance of investing in diversified MF schemes.As you have taken a huge risk in investing in a sectoral fund, whose timing you've got all wrong, you are seeing a negative returns.
It would be apt here to point out, that I've been crying hoarse on this forum against sectoral or thematic exposures and instead stressed only on diversified MF schemes.
Though this is sad, it is better to take this as the part of a learning curve and develop so that investors don't commit the same mistake over again.
Nothing personal friend, but, those that take sectoral bets without being experts/ masters in reading that sector/ timing to perfection are literally doomed...So, beware....
Answered by Ramesh Chordia, 24 Sep '10 11:10 am

 
  
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2.

In deciding to keep a dead investment for long doesn't really pay out. In one of the answers below, it has been amply clarified about the dangers of sectoral or thematic investment in MFs. When things turn for the bad, they are the worst sufferers as equity prices plunge and the MF value goes down along with. One of the reasons, it is stagnant is because of its 20.3% exposure to global equity. Plus if you look at their complete holdings in the Fund, you will realise that some of the stocks that are part of the Fund are no where the level it was in 2007 or even 2008. Obviously, the turnaround for the MF too would be equally slow.

It feels bad but some times, it is better to get out of it. I too had the same experience of investing in two MFs, based on the so called Wealth Manager's advice. But once bitten twice shy. That time, I wasn't interested in MFs but after that, I have done hell of a lot of study on ULIPs, MFs etc to ensure that I don't get taken for a ride.

Two such MFs we ...more
Answered by Omega, 24 Sep '10 12:49 pm

 
  
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