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My mutual funds are giving double-digit negative returns. Should I hold?

MF analysis
I have invested Rs 25,000 in the following mutual funds two years ago:
Nippon India Small Cap Fund
Tata Equity PE Fund
L&T Emerging Businesses Fund (G)
IDFC Focused Equity Fund
L&T Infrastructure Fund
HDFC Small Cap Fund
DSP Natural Resources and New Energy Fund

All the schemes are giving double-digit negative returns. Should I hold these schemes?
--Dilip Prasad

Suresh Sadagopan, Founder, Ladder7 Financial Advisories, responds:

It looks like you have a very high risk appetite. If not, you might have invested in these schemes based on the returns they had given in the past. If that is the case, it is not the right investment approach. It is important to invest in the mutual fund schemes that are in line with your risk profile.

Most of the schemes you have chosen are very high-risk schemes. If you are not comfortable with the higher risk element, you need to reallocate the amount in schemes that suit your risk profile. I would advise you to take the help of a mutual fund advisor, who works on a fee-only basis, and then proceed.
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