The fall in the midcap mutual funds net asset values (NAV) largely due to an external factor, said Feroze Azeez, Anand Rathi Private Wealth Management.
Speaking to CNBC-TV18, Azeez said it's very important to understand your fund deeper and see whether you have to stay the course or is there some corrective action needs to be done.
Right now, it is very important to know what is happening within the midcap market. There are questions because stocks have been falling, the index itself is down quite a bit. When do you know that you need to stay put and this is just a market phase it will get over and when do you need to start worrying about your midcap fund?
Of course, when you see such carnage in specific midcap stocks, then it's very important to understand your fund deeper and see whether you have to stay the course or is there some corrective action needs to be done, because that trigger of a movement outside is not as crystal clear to most viewers or investors, whether that is the trigger to move out or stay in. How does one do that? First, you have to categorise whether the problem is internal or external.