Should I hold on to Reliance Power & Infra Fund?

The NAV of Reliance Power & Infra Fund was Rs 53.08 in September 2010. The NAV is Rs 31.075 now. Will it reach Rs 53 in the coming days? What should I do?

-- Kiruba Shankar Senthil

Reliance Power & Infra Fund is a sector scheme that invests in the infrastructure sector. Sector funds are risky and they are cyclical. Many mutual fund advisors do not recommend sector schemes to regular investors because of this reason. Sector funds are suitable for well-informed investors who can time their entry and exit in them. It is very difficult to predict the future course of the market. So, we do not recommend sector funds to retail investors.