Saturday, July 19, 2008

Switch from Uti Infra to ICICI Infra

I have some units of UTI Infrastructure fund.Shall i change to ICICI Infrastructure fund which is performing better?

Dear Vinod,
I am surprised by your question. You had already asked this question in different format and were already answered by experts like Wadia and Ashalanshu, Still you are again asking. Is it because you dont have faith in them or you were not convinced by their answer?

Anyway, whatever it is, Here is my take on your question.

At the outset, I dont think you should switch a fund just because another fund in the same segment is performing better. You have to give time for a fund to prove itself, say atleast 8 to 10 quarters and only then take a decision.
UTI Infrastructure had a great past and slipped lately in line with all Infrastructure funds. ICICI Infrastructure Fund too had a great past and in line with the market, faltering a bit now. You need to take a long term call and if so, I feel you are better investing or rather switching to a Diversified Fund, say UTI Leadership Fund from the same fund house or Reliance Growth fund/HDFC Top 200 Fund.
Think twice before taking a decision either way.
Best of luck.
Srikanth Shankar Matrubai

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