I Have 15000 units of Bandhan Flexi cap Mutual Fund (Previously Known as IDFC Flexicap Fund). But the fund is not performing from last 1-2 Years. Pls guide...

Ans: You may please continue with 4 and 5 star schemes; for the rest you can consider these:

Equity - Small cap Fund

• Kotak Small Cap Fund – Growth
• Axis Small Cap Fund – Growth

Equity - Mid Cap Fund:

• DSP Mid Cap Fund – Growth
• SBI Magnum MID CAP FUND – GROWTH
• Motilal Oswal Mid Cap 30 Fund (MOF30)-Growth Option

Ans: I always feel that, be it any asset - real estate, gold , MF or shares, it is always better to diversify. In your case, since your SIP is under=performing, it is better to wait and then to diversify. The investment object of UTI Flexicap is capital appreciation, which would be possible in long term only. Always read the investment objective of the MF, before investing and check if the objective is aligning with your own investment objective.

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.

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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.