My mutual fund SIPs are giving negative returns. Should I continue?

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I am 26 year old. I started investing in the following mutual funds since last year.
HDFC Small Cap Fund
SBI Bluechip Fund
Motilal Oswal Multicap 35 Fund
Mirae Asset Emerging Bluechip Fund
SBI Bluechip Fund

I have been investing an equal amount through SIPs in all these funds for the past 15 months. I haven't gained anything, and few of my schemes are in almost -10% negative. Should I continue in the same portfolio or should I change the same? My goals are of 3-4 years time frame.
-Sumit Desai

Most mutual funds have given negative or paltry returns in the last one and a half years. This is because of the poor conditions in the stock market. The recent rally in the market helped some schemes to recoup some of the losses, but investors haven't seen any meaningful returns. When you are investing in equity mutual fund schemes, this is a common phase you would encounter in your investment journey. You cannot avoid bears and volatility when you invest in the stock market. That is a part of the game - it is risky, that is why it offers higher returns.

However, you have chosen the wrong asset class for your financial goals. You should have never invested in equity mutual fund schemes to achieve a three or four-year goal. Debt mutual funds and bank deposits are more suitable for short-term goals. When you have a short period, you should focus on preserving your capital and earn modest returns. A short-term investor do not have the luxury of time to recoup his or her losses. That is why they are asked to stick to safer options like debt mutual funds and bank deposits.
  • 12.28%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 2.10 YearsTime taken to double money
  • 10.26%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 3.11 YearsTime taken to double money
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