VR Logo

Should I continue with L&T Midcap fund?

Dhirendra Kumar talks about the performance of L&T Midcap fund

Value Research Stock Advisor has just released a new stock recommendation. You can click here to learn more about this premium service, and get immediate access to the live recommendations, plus new ones as soon as they are issued.

I have invested in L&T Midcap fund. If you look at the performance with respect to other mid-cap funds, it has been down. Over the past one year, it has performed badly but its three-year performance is good. So, should I continue with L&T Midcap or go for some other mid-cap funds?

It has been a struggling year for mid caps but that is how they are. L&T Midcap is not an unusually bad fund if you compare with other funds. Most mid-cap funds have fallen and so has L&T Midcap. When you are investing in such a fund, there are only two things in your hand -have the right time frame and stay invested even in a time like this, as investing during a bad time is what ultimately yields returns in mid caps.

When it is very easy to invest in mid caps and when they are doing very well, that is actually a bad time. It is because they may fall soon after this period, as the markets are cyclical. Also, mid caps and small caps fall more in a falling market. I don't know when the market will recover, but when it will recover, I think all the investments done at the market lows will turn out to be more rewarding. Going by its portfolio, L&T Midcap fund, even now, is an above-average fund.