Should I continue with my investments in thematic and mid-cap funds?

My portfolio comprises Sundaram Rural and Consumption Fund, HDFC Mid-Cap Opportunities Fund, L&T India Value Fund and Tata Equity PE Fund. I started my SIPs in 2017. However, seeing losses, I stopped my investments in 2018. Even now these funds are running into losses. Should I continue with these funds or shift my investments to some other funds?
- Pooja

I am quite surprised by this, as the chosen funds are a good combination. All these funds come with different themes. Having said that, Sundaram Rural and Consumption Fund, in my opinion, is a very promising sectoral fund. Although I usually advise not to invest in any sectoral funds, this fund has a broad theme.

Further, investing only during an up-market, like the one in 2017 where most of the equity funds were performing well, is bound to result in disappointment. 2018 was overall not a profitable year for the market, while the same holds for the months gone by in 2019. The choice of your funds is good; however, their performance largely depends on the market's overall performance. Thus, you are witnessing losses.

Having said that, investing in this combination of funds continuously and systematically can provide meaningful returns in the future.

This article was originally published on August 05, 2019.