I had invested an amount of Rs.5000/- in UTI Flexi Ca[ Fund Direct Growth on 5.5.21. Today found after two years NAV is Rs,5707.21P. Please advice should I exit or continue.

Ans: Sector funds to be avoided and good funds in Multicap , Focused and Mid cap should be invested in.

Midcap: Suitable option considering quality and value for money at present levels is DSP Midcap and Axis Midcap

Multicap: Suitable options considering quality and value for money at present levels are UTI Equity Fund, Axis Multicap, Motilal Oswal Multicap 35

Focused: Suitable options considering quality and value for money at present levels are Axis Focused 25 and Motilal Oswal Focused 25

Ans: This is a fund focused on the Technology Sector which has been weak due to the steep correction in Nasdaq. One needs to understand the risks associated with sectoral funds. Ideally, investors who are able to make active calls of entry and exit of sectors only should invest in such funds. Now that you have invested, I would suggest you can wait for a rally in the sector and then exit and move to a diversified equity fund.

Ans: please remember that investment decisions should be made based on your individual financial goals, risk tolerance, and the specific details of your investment portfolio. Here are a few points to consider:

Review Fund Performance: Assess the performance of the Kotak Global Innovation Fund against its benchmark and peers in the same category. Evaluate its performance over different time periods to get a clearer picture.

Understand Reasons for Underperformance: Research and understand the reasons behind the fund's underperformance. Factors such as market conditions, sectoral performance, and fund manager strategy could all play a role.

Long-Term Perspective: If your investment horizon is long-term and you believe in the potential of the fund's investment theme, you may consider holding onto your investment despite short-term fluctuations.

Seek Professional Advice: Consult a financial advisor or investment expert who can provide personalized advice based on your financial situation and investment objectives.

Diversification: Review your overall investment portfolio to ensure it is well-diversified across different asset classes and investment themes to mitigate risk.

Exit Strategy: If you are dissatisfied with the fund's performance and it no longer aligns with your investment goals, consider redeeming your investment and reallocating it to other investment avenues.

Ultimately, the decision to redeem or hold onto your investment in the Kotak Global Innovation Fund depends on your assessment of its performance, your risk tolerance, and your long-term investment objectives.

Ans: Hi Shree,
When did you brought it? If you check the holding of this fund, there major allocation is to Infy ~20% and TCS ~18% and all other in major IT companies. IT as a sector is not doing good since last 1year as we are the mojor supplier of services to countries like US and EU, these countries are in problem and hence impacted the sector. You need to hold this fund for atleast 5yrs to see the real benefits.

Disclaimer: Investments in securities are subject to market RISKS. Read all the related documents carefully before investing. Please consult your appointed/paid financial adviser before taking any decision. The securities quoted are for illustration only and are not recommendatory. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Ans: When faced with underperforming investments like UTI Flexicap Fund, it's essential to evaluate your options carefully. Here are some steps you can consider:

Review Performance: Assess the fund's performance objectively over different time periods and compare it with its benchmark and peer funds. Look for consistent underperformance or temporary setbacks.
Understand Reasons for Underperformance: Research and understand the reasons behind the fund's underperformance. Is it due to changes in fund management, investment strategy, market conditions, or specific sectoral exposures?
Reassess Investment Thesis: Revisit your original investment thesis for choosing UTI Flexicap Fund. Does it still align with your financial goals, risk tolerance, and investment horizon? Consider whether the fund's underperformance is a temporary setback or a fundamental issue.
Seek Professional Advice: Consult with a Certified Financial Planner or investment advisor for personalized guidance. They can provide insights into whether it's prudent to hold onto the investment, reallocate funds to better-performing options, or exit the investment altogether.
Consider Portfolio Diversification: If UTI Flexicap Fund no longer fits your investment strategy, explore reallocating your investment to other funds or asset classes that better align with your goals and risk profile.
Patience vs. Action: Determine whether you're willing to wait for the fund's performance to improve or if you prefer to take proactive steps to address the underperformance.
Ultimately, the decision to withdraw or wait depends on your individual circumstances, investment objectives, and risk tolerance. It's essential to make informed decisions based on thorough research and professional advice.