Dear Money guru, I have invested Rs 2 Lakhs in Kotak Global Innovation Fund of Fund Growth (Regular Plan), with NAV of Rs 10. It is now over a year, and NAV has not crossed even 8.5. What do you suggest? Should I redeem of wait. Your advise will be highly appreciated. Thank you very much!
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.
