Ask ET Mutual Funds: Should I sell Reliance Gold Savings Fund?

I have investments in Reliance Gold Savings Fund (Growth). I stopped my SIP as the fund was not performing well for the last one year. I had invested Rs 37,000 and that amount has reduced to Rs 35,219.32. Firstly, I would like to redeem the amount and then would like invest it as a lumpsum in a tax saving mutual fund scheme. Kindly suggest. Thank you in advance.

---Rafi Ansari

Chokkalingam Palaniappan, Director, Prakala Wealth Management, responds:

Please remember that gold as an asset class has not performed well for the past few years and hence your investment has also not performed well. Gold is not a great asset class for generating wealth. You can redeem and invest the proceeds in DSPBR Tax Saver Fund. If you would like to invest in an aggressive ELSS fund, you may consider investing in Motilal Oswal MOSt Long Term Fund.

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