A LOOK at the current market situation may make your heart bleed. So, should you stay invested or redeem your shares/units? Certified Financial Planner, Anil Rego, says its better to stay invested. He also answers a very common query that most investors ask - 'Have I invested in the right funds?'

I have been investing in six mutual funds for the last 10 months through the systematic investment planning (SIP) mode. But now with the sharp fall in the stock market, I have suffered a loss of 20-30 per cent loss in all the funds. So should I continue investing or redeem my units? Following are the funds in which I have invested.
- Reliance-Growth Fund
- Reliance-RPDSF
- HDFC Growth Fund
- Franklin India High Growth Companies Fund
- DSPML Tiger
- DSP Gold Fund
-- Raghu

Overall fund report card:
Most funds are good; however, it would be possible to give a fund-wise recommendation only when we understand your risk/return profile. Ten months is a very short period. It is a good thing that you opted for the Systematic Investment Planning (SIP) route which you will observe has suffered lower losses; continue with your SIP on a 5-year time horizon, the amount you invest now will reap superior returns.

Individual fund reports:
Reliance Growth: This is one of the best funds among mid cap funds. It has won the lipper fund awards in the past. The recent slip in performance is due the fact that this fund invests in mid-cap companies and the mid cap space has seen a significant correction. It is best to hold this fund, infact, you can continue with the investments.

If like Raghu, you have invested in a mid-cap fund, here is a tip for you:
Invest through the SIP route: The idea of systematic investment is to average out your cost based on market trends, and if you have bought funds when the markets were at all time highs, do not not lose the opportunity to buy it at current lows.

Next page: Best sector funds

Photograph: Getty Images

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e-mail: Anil Rego

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