Investors in mid-cap funds as compared to those in large-cap funds are a worried lot – Large-cap funds over a 1-year period, on an average, have fallen by around 7 per cent, while the mid-cap funds are down by almost 15 per cent! The return from a bank fixed deposit could have been anywhere around 7 per cent over the same period. Every time the stock market indices take a pause or dips, the investors who had just started their investing journey gets perturbed. New investors especially those who do not follow a proper selection process and make an investment in mutual funds (MF) on an ad-hoc approach find themselves on slippery ground. On the other hand, in times when markets fall, long term investors are less bothered and some even use low levels to average their cost of holdings. What should investors do now, should more be invested, what will make the mid-cap funds bounce back are some of the queries we posed to Rahul Jain, Head, Personal Wealth Advisory, Edelweiss in an e-mail interview.
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