Ask ET Mutual Funds: Should I exit SBI Magnum Gilt Fund?

I have invested Rs 2.5 lakh in SBI Long Term Gilt Plan (SBI Magnum Gilt Fund – Long Term Plan), 10 months ago. Currently, I am getting 10.42 per cent returns. I had Invested with an expectation of minimum 15 per cent returns for the next three to four years. Should I exit or divert this investment to some largecap fund? I also have an SIP of Rs 10,000 per month in midcap funds.
--Nitin Jaswal

Apoorva Vora, Founder & CEO, Finolutions Wealthcare, responds:

If you had invested in SBI Magnum Gilt Fund - Long Term Gilt Plan with an objective to earn over 15 per cent annualized returns, you had expected little too much in the first instance. To be able to earn around your expected returns, you will necessarily have to invest in a balanced fund, or a diversified equity fund. You may look at ICICI Prudential Balanced Fund or Kotak Select Focus as options.



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