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Should I exit L&T India Value 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 11, 2019, 12.47 PM IST
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I have invested Rs 3 lakh in L&T India Value Fund (Growth) in 2017. It hasn’t given me any profits yet. Kindly tell me whether it is good idea to exit this fund?

-Veena Vijayan

You have not mentioned your investor profile or whether you have investments in other mutual funds. So, we are offering some general comments.

One, you have invested in a value -oriented fund. Value funds follows value investing strategy. In other words, these funds invest in stocks that are undervalued in the market, and wait for them to appreciate patiently. That makes them ideal for investors who want to play it take and ready to wait for a long period to realise the true value of their bets. That is why many mutual fund advisors recommend value funds as a diversification tool to value-conscious investors. If you are okay with these factors, you may continue with value funds. Otherwise, you should switch to schemes that follow a growth-oriented strategy.

You have invested in a good value scheme. Many equity mutual funds, especially value funds, have been going through a rough patch in the last one and half years. Though the recent rally has helped some funds to recover marginally, many schemes are yet to stage a comeback.

We will not be able to recommend any mutual fund category to you as you have not mentioned your risk profile. Always choose mutual funds based on your goals, investment horizon, and risk profile. For example, invest in debt mutual funds for you short-term goals, and equity schemes for long-term goals. Further choose, the debt mutual funds and equity funds based on your investment horizon and risk profile.
(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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