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.