HDFC Top 100 Fund is not performing well. What should I do?

I have been investing in HDFC Top 100 Fund (direct, growth) every month for the last three months. Compared to its peers I don’t think the scheme is giving good returns. What should I do?
- Shreyans Shah

Three months is too short a period to assess the performance of an equity mutual fund scheme. Equity mutual funds can disappoint you in the short term. You should invest in equity mutual fund schemes with a time horizon of at least five to seven years.

However, you should keep track of your mutual funds and review their performance once or twice a year. Always compare the performance of the scheme with its benchmark and the category average. If the scheme manages to beat its benchmark, the fund manager is doing his job. If it has failed to manage both its benchmark and category average for a year or two, you should find out the reason behind the underperformance. If the reason sounds unconvincing, you may consider selling the scheme.


HDFC Top 100 Fund is part of our recommended list of large cap mutual funds. We track the schemes that are part of our recommendation list closely and inform you if there is any change in the recommendation list. Follow our monthly update of the recommendation list: Best large cap mutual funds to invest in 2019