Investment in Sundaram Capex Fund

One investor Mr. Srinivas was in doubt whether to continue to stay invested or not and wrote : "I invested Rs.1.20 lakhs with Sundaram's capex opp.growth fund. The investment made during Nov & Dec 07. Today the investment has eroded to Rs. 0.90 lakhs. I do not see any effort from the investment officer to change the philosophy in the portfolio so that the principle erosion could be stopped.

If the MFs simply buy some blue chip scrips and sit on them with out changing any thing in the portfolio to negate the market slip what is the advantage for an invester like me to invest with MFs instead I could have opted some blue chips with my MF investments.

Some body pls suggest how far the MFs are doing their job with extra stretch to perform better in the present higly volative markets"

Srikanth Shankar Matrubai replied : "Mr. Srinivas, you have chosen the right heading 'Change in Investment Philosophy'.
I think that is what you need, the change in Investment Philosophy. Just 6-8 months in a fund, and already you have decided that the fund is bad performer!. Can't you see, the market has also tanked substantially, then how can your fund, Sundaram Capex Fund, be insulated?.
Also, you should note, that the fund has not performed as badly as the Sensex.
Regarding the Fund Manager taking a decision of changing his investment philosophy, he can't; that's a fact. That's why I keep harping again and again, never go for either sector or theme funds, you are always better off by investing in Diversified Funds.
In Diversified Funds, the fund manager has a mandate across all market caps, all sectors, all theme. He has no restrictions and he will definitely keep changing his stocks and reduce underperforming stocks and add better performing stocks. The diversified funds tend to outperform theme and sector funds by a wide margin over a period of time.
Sundaram Capex Fund is a better managed fund. You are advised to continue. Or You may switch a major part of your fund corpus to Sundaram Leadership Fund.
Best of luck.
Srikanth Shankar matrubai.
P.s.: Never invest in lumpsum. Always go for Sip. You will never lose money. "