Ask Value Research

Fall in Ratings

DSPBR Mid and Small Cap fund’s rating has fallen. But should you consider exiting it now?

I’ve been investing in DSPBR Small and Mid Cap - G for the last 15 months. The rating of this fund has gone down from 5-stars to 3-stars in this period. Should I redeem or continue with this investment?
Rajnikant GK

This is still a well-performing fund, which is just going through a lean time. You should continue investing. While it is true that any slip in rating should prompt you to sell the fund; in this case, the rating has fallen because of the fund’s volatility relative to other funds in its category. But purely on the basis of performance, you should continue investing in it. If you're able to tide over this lean time, it should prove to be very rewarding.



This article was originally published on May 08, 2012.

Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month