Should I sell L&T Emerging Businesses fund?
If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Jitendra Solanki, founder, JS Financial Advisors, responds:
Before investing in a mid cap and a small cap scheme, you need to understand the risk and return characteristics. Both the categories are more volatile where you might see higher downside than other categories. However, they recover much faster and can deliver higher returns.
To invest in mid or small cap funds, you need to have an investment horizon of at least 10 years. 550 days is too short to judge any scheme unless it is performing very badly in comparison to its peers.
Both the L&T Funds have a good track record. So, stick with these funds but be prepared for higher downside in adverse market scenarios.