I had invested around Rs70,000 in December 2007 (Reliance Diversified Power Sector Fund—Growth, Merrill Lynch Opportunity Fund—Growth and Reliance Growth Fund—Growth Plan). I have lost around Rs18,500 till now. Should I continue to hold or bail out? I had also invested around Rs50,000 in shares of Tata Motors, ACC, TV Today and HDFC. Should I continue to hold on to these also?
This is the time to either invest fresh or stay invested as the markets are showing signs of bottoming out. Regarding your mutual funds, all your schemes are good and are likely to bounce back once the markets stabilizes, though coming back to their high levels would take some time.
My advice is that you should stay invested for at least a year. Regarding the stocks, Tata Motors Ltd, ACC Ltd and HDFC Ltd are all frontline stocks and should move up in both the short term and the long term, so the clears answer regarding your stocks is also hold them.
I have invested Rs1 lakh in UTI Energy Fund (I bought units at the rate of Rs16.67). But now it has come down to Rs12.24 per unit. What is the future of the UTI Energy Fund? Can I hold for the long term or should I switch to some other scheme? In case I switch, which is the best scheme?
UTI Energy Fund has a very sound portfolio, which comprises of Reliance Industries Ltd, Bharat Heavy Electricals Ltd, Larsen and Toubro Ltd, NTPC Ltd, Tata Power Co. Ltd, Oil and Natural Gas Corp. Ltd, Reliance Energy Ltd, Reliance Petroleum Ltd, Suzlon Energy Ltd and ABB Ltd, with the recent addition of Reliance Power Ltd.
Since all these stocks are top-rung stocks, they are likely to do very well once the market bounces back. So, I would suggest you to hold it; if you wish to diversify, then I would suggest you pick up banking sector or infrastructure-based mutual funds.
Going by schemes, I think UTI Banking Sector Fund and Tata Infrastructure Fund are good with a one-year time horizon.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.