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Should I stay invested in Reliance Small Cap 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.

ET Online|
Oct 23, 2019, 02.59 PM IST
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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?
--Mohammed Hashim

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.
(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.)
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