Tipping point: Are you getting impatient with your small-cap fund?

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Over the past year, small-cap funds have given a category average return of -15.9 per cent. Many investors are even thinking of pulling out their money, even if it entails booking a loss. It is not advisable to do so. When you invested, your distributor must have suggested a minimum tenure of five to seven years. Stick to your resolution to be a long-term investor. Even now, their 10-year category average remains 12.8 per cent. Remember that if you are patient, you could again see an year like 2017, when these funds gave a category average return of 50.23 per cent. In future, when a category is doing well, book profits in it. That is not the time to add to your investments in it.



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