I have started SIPs of Rs 1,000 in HDFC Midcap Opportunities. I want to invest for 9 to 10 years. Please advice.
- NR Singh
While HDFC Midcap Opportunities is an excellent mid- and small-cap fund, it is also a risky proposition. Such funds will do exceptionally well during a bull run, but they would also fall a lot more than the broader markets during a bear phase. Continue investing in it if you have the stomach for high volatility and won't get affected by an interim decline in the value of your investments. However, you can't invest in any market-related instrument and forget about it for 10 years. You should review your investments at least once a year.
This article was originally published on January 23, 2013.