ET Now chats with Dhirendra Kumar, CEO, Value Research on what to do as a mutual fund investor when the market is falling.
ET Now: One gets goose bumps seeing the way the midcap carnage is panning out. Is it time now to go back to the drawing board and take a relook at your mutual fund portfolios as well as exposure to mid and smallcaps?
Dhirendra Kumar: Yes, this could well be a reality check for many investors because in 2015, even struggled, the smallcaps were on top of the pack and there were funds which were up 20 per cent last year and it was difficult to resist the temptation not to be there. When we checked with investors, many would say they are aggressive investors and are willing to take risk but the fact is that they were chasing performance. All those investors who are completely unnerved by the latest market decline, have to decide if they are really aggressive and if they can handle a sliding market.
