Should I continue to invest in Reliance Value Fund?


I have been investing in Reliance Value Fund (Growth) through a monthly SIP of Rs 2,000 since November 2007. Please advise should I continue with the scheme?
— Anthony Cabral

It seems, you are worried about the negative returns given by the scheme in the last year. The scheme has given a return of -8.45 per cent, compared to its benchmark that gained around 3.56 per cent. Even otherwise, the scheme has been just an average performer in the three- and five-year year horizons. If your concern is short-term performance, you may continue with the scheme. If you are worried about its average performance even the long horizon, you may consider investing in better schemes in the value-oriented category. However, before that just re-examine your reasons for investing in the scheme. Based on your goal, investment horizon and risk profile, you should choose a scheme.

A rough calculation shows that Reliance Value Fund has given you around 12.55 per cent CAGR since November 1, 2007. If you look at the returns standalone, it is good since you are investing in a value fund.



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