I retired from government services in 2010 and invested Rs 1,700 every month in Reliance Diversified Power fund since then. The value of my investments has been insignificant in the past seven years. Should I continue the SIP or switch over to some other fund?
Sankaran Gopalan, Chennai
In your retirement you have taken a big risk by investing in a thematic fund in the power sector. The fund proves its theme whenever there is a demand or favourable development in the sector. If this was your only investment, it was a bad choice. It will not be a bad idea to exit this fund, cut your losses and invest in a diversified equity fund with a proven track record and performance history. Remember to invest in thematic funds only when you are certain that the theme will play out favourably and preferably in lump sum. As for every other financial need, it will be better to invest in a diversified equity fund from the OLM Elite list.
