I am investing Rs 1,000 each per month in Sundaram S.M.I.L.E. and Reliance Growth since 2009. But both the funds have given negative returns. Please advice whether to stay invested or exit from these funds?
— Madhusudan
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Both are mid-cap funds and have been consistently underperforming compared to the benchmark as well as peers in the category. It will be better for you to cut your losses in these investments and look for better performing funds instead. It is not enough to be regular with investments; you should also track the performance of the funds you invest in and gauge its progress at least once a year before continuing your investments in them. If you go onto our website and check the listing of funds in this category, you will get a clear idea on the good performers and how these two funds stack up against the competition
.This article was originally published on March 07, 2012.