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Should I invest additional amount in Reliance pharma Fund

I have around 1.5% of my investment in reliance Pharma Fund. It is a good amount which I invested only once around one year back. Now it is giving around - 8% return. This is the only negative return fund in my portfolio. Even after regular SIP I always have some amount left in hand for investment which I invest among the better performing diversified /Large cap mutual funds. Should I invest additional amount in reliance Pharma?

Jun 4, 2016 by Sundeep Nigam, Haridwar  |   Mutual Fund

If you see the long term trailing returns of the Reliance Pharma fund, it is quite impressive – check here https://goo.gl/F6JzOq

The investment horizon for sectoral funds should be minimum 5 years, therefore, you should not judge the fund’s merit based on your one year holding. Reliance Pharma Fund has given -0.39% return compared to its Benchmark (S&P BSE Healthcare) which has given -6.17% return. The additional purchase (for the sake of cost averaging) can be done provided that the current NAV of Reliance Pharma Fund is available at a good discount than that of your initial purchase. However, this should be within the limit of your portfolio’s overall exposure to sectoral funds as mentioned by you.

We received a similar query in January "Is it worth holding Reliance Pharma Fund or exit from it”. You may like to read the interesting reply here https://goo.gl/55YaDc

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