Mid-Cap Funds Update! With 1-year return down over 15%, what should investors do now?

The average return of mid-cap mutual fund (MF) category is a negative of almost 15 per cent over the last 1-year. For most investors who had started investing in mid-cap funds over the last 24 months, the portfolio is deep in the red. Equity investors need to be aware of the fundamental working of the markets. The stock market is not a one-way street and the share price of stocks listed on the stock exchanges do not move only in any one direction or in a predictable manner. Markets are volatile in nature and that is how they are supposed to be – uncertain and unpredictable. Several factors including those which are internal to the company and even the external economic environment can play a role in determining the performance of the stock prices. Budget 2019 proposals on long term capital gains tax could be only one of the factor.“There has been a marked slowdown in loan sanctions from NBFCs (down 31 per cent for the quarter ended March 2019 versus a year ago) which is resulting in a decline in credit availability across the board. Auto sales have declined sharply, and overall economic growth is suppressed,” says Kunal Bajaj, Head – Wealth Management, Mobikwik.

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