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Should I continue to invest in Axis Focused 25 Fund?

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Nov 01, 2019, 05.29 PM IST
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I am 22 years old. I have been investing Rs 5,000 per month in Axis Focused 25 Fund for the past eight months. The scheme has given positive returns till now. I have a long investment horizon of 25 to 30 years. I received an email recently that they are making some changes in the fundamental attributes, like using covered call strategy and making investments in REITs and InvITs. I can take moderate to high risk. Should I continue with my investment?
--Karan Kinger

Jitendra Solanki, founder, JS Financial Advisors, responds:

Mutual fund schemes change their mandate due to various reasons. A fund manager’s view of the market is a common reason. May be the fund manager is seeing good opportunities in a new sector that can generate returns like REIT is bringing in. It may enhance the risk return characteristics of the fund. Focused funds are a kind of multi cap funds but with concentrated portfolios. They may be riskier than other multi cap funds. If you have invested in this fund after understanding the risk return trade, you can continue to invest. Also, keep a close watch on the scheme’s performance for the next two to three years.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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