Your fund trailed its benchmark. Now what?

Summary: Every good fund goes through a bad stretch. The investor who sold at the wrong moment lost more than the fund ever cost them. The harder question isn't when to sell, it's how to read what the underperformance is actually telling you.

Summary: Every good fund goes through a bad stretch. The investor who sold at the wrong moment lost more than the fund ever cost them. The harder question isn't when to sell, it's how to read what the underperformance is actually telling you. Two subscribers asked the same question in last month's live session. Both owned Parag Parikh Flexi Cap as their largest equity holding. Both had watched it trail its benchmark for a stretch. Both wanted to know the same thing: do I stay, trim, or switch? It is the hardest question in mutual fund investing. And it almost never has the answer the subscriber is hoping for. Every good fund goes through a bad stretch. HDFC Top 100 had o

This article was originally published on April 27, 2026.