Can I continue with these mutual funds in the current market scenario?

If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

iStock
I have been investing Rs 2,500 per month in each of these mutual fund schemes:

Axis Focused 25 Fund (Growth)
HDFC Small Cap Fund (Regular, Growth)
SBI Magnum Multicap Fund (Growth)
Mirae Asset Tax Saver Fund (Regular, Growth).

I have been investing for the last two years. However, I have always seen negative gains from these funds. I am a moderate investor. Are these funds the right choice, considering the current crisis or future scope of performance?
-Ameya Phalke

Investors with a moderate risk profile are typically asked to invest mostly in multi cap schemes. Except for one scheme in your portfolio, the other three schemes are in line with your risk profile. You should reconsider your investments in HDFC Small Cap Fund as it is not in line with our risk profile. Small cap funds are meant for aggressive investors with a very high risk-appetite and ability to withstand volatility.

The performance of your schemes are reflecting the general trend in the market. Though the key indices are up, the undertone of the broad market continues to be negative for sometime. Money has been chasing a few select stocks in large indices. That is what is keeping the key indices up. However, most other stocks are still doing badly. That is why the schemes were performing badly.
  • -4.23%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.11 YearsTime taken to double money
  • 5.92%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.1 YearsTime taken to double money


Investors cannot do anything about the current situation as you know the nobody knows how long the pandemic is going to last or when will the economy pick up. If you have your financial situation in control – that is, if you have a large contingency fund, your job is safe, etc – you may continue with your investments in the three schemes.

Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

Top Mutual Funds

3 M(%)
6 M(%)
1 YR(%)
3 YRS(%)

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

Save with Tax planning SIP's

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+