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Longer Than A Year

Mid- and small-cap funds are long-term investments & shouldn’t be assessed on a one year time frame…

I had invested in IDFC Small & Midcap Equity and DSPBR Micro Cap fund last year through Rs 2,000 monthly SIP, but the funds are not earning well. Should I continue my investments or switch to better funds?
- Rakesh Gupta

Fund Scheme  Category  Rating  3-yrs ret (%)  5-yrs ret (%)
DSPBR Micro Cap Mid & Small Cap **** 18.39 NA
IDFC Small & Midcap Equity Mid & Small Cap ***** 24.78 NA
Return as on September 12, 2011, Rating as on August,2011

Both the funds are mid- and small-cap funds that are highly rated, with good long term performance. When investing in this category of funds, you should be looking at performance consistency and track record and not a one year investment time frame. These are not investments for one year. You should continue investing in both these funds and track their performance regularly to assess the progress.



This article was originally published on September 13, 2011.

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