Investors in small and midcap mutual fund schemes are nervous. Perturbed by the possibility of a steep fall of small and midcap stocks, these investors are calling up their advisors to check whether they should take their profits. Sure, some advisors are asking them to take part of the profits, some others are using the opportunity to drill investment basics into the heads of these investors.
“We are making them understand that mutual funds are a long-term investment and the market will rise and fall during your investment horizon. This shouldn’t make you withdraw your investments,” says Puneet Oberoi, Founder, Excellent Investment Advisors. He adds that getting out of the equity funds at this point might also result in losing out on returns. “The investors might just miss a rally after a small correction if we get them out of the equity funds at this point,” Oberoi says.
