Should I hold onto my investment in HDFC Gold Fund

I am holding HDFC Gold Fund for the last 3 years (Last SIP 16-Mar-2015). Today I am getting a profit of about 1,000.00. Should I sell it off or hold still? For last 3 years the fund has been in negative without any appreciation. I do not have any immediate need for funds, but was wanting to at least realize minimal profit and not go into loss. Advice will be highly appreciated?

Jan 10, 2019 by Satish, Delhi | Mutual Fund

Investment in gold is done mainly for the purpose of asset allocation and hedge against inflation. Under any circumstances, however, it should not be core part of your portfolio.

Therefore, if it is your only market linked investment, we suggest you to redeem HDFC Gold Fund and invest the redemption proceeds in diversified equity mutual funds through STP/SIP. However, if your investment in HDFC Gold Fund is over and above other market linked investments in your portfolio, then you can hold onto this investment for the long run. Having said the above, investment in Gold Fund should not be more than 5-10% of total portfolio value.

Wishing you good luck!

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