I have invested in Reliance Small Cap Fund, Reliance Banking Fund, and Reliance Fixed Horizon Fund through SIPs. All these schemes are in red. Should I stay invested?
Tarun Birani, Founder and CEO, TBNG Capital Advisors, responds:
Small and mid cap mutual funds have been going through rough times since last 6 to 7 quarters. You need to have an investment horizon of at least 7 years to invest in these schemes. The two categories might take a long time to revive. Also, these schemes are suitable for investors with a high risk taking ability.
Moreover, all your investments are in one AMC. I would advise you to diversify your investments across different AMCs. Reliance Small Cap Fund is now Nippon India Small Cap Fund. It is a good fund with a good track record. You can continue to invest in the scheme provided it suits your risk profile. Reliance Banking Fund is a thematic fund. Thematic funds have are high in risk. I would recommend you to invest the amount in a multi cap fund.