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.