Should I continue to invest in Axis Focused 25 Fund?
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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.