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Expecting more Smiles

A small-cap fund like Sundaram SMILE would be worth investing in through the lean times…

I have been investing Rs 1,000 a month via SIPs in Sundaram SMILE Equity - Growth since September 2009. Should I continue with this scheme for a period of another 20 years?

Sundaram SMILE was launched in 2005 and has performed well, yielding about 15 per cent since launch. However, it is not for the faint-hearted. This fund focuses on small-cap stocks only and has not given smiles for a while. But sticking through the lean times is very important when you're investing in such a fund. That said, this is not the kind of fund in which you should remain invested for another 20 years. You should become a little more conservative as you get closer to your goal. So you can continue investing in Sundaram SMILE for the first 10 years. But remember to keep a watch on it. Any market-related investment should not be slept over. Keep reviewing your investments at least annually. But for now, through the lean times, it is a fund worth investing in.

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