No positive returns. Should I sell my mutual fund schemes?

I am 25 years old. I am investing Rs 25,000 per month in mutual funds since last two years:

DSP BlackRock Small Cap Fund - Regular (G): Rs 5,000
Franklin India Smaller Companies Fund (G): Rs 3,000
ICICI Prudential Banking and Financial Services Fund (G): Rs 3,000
ICICI Prudential Equity & Debt Fund (G): Rs 3,000
Mirae Asset Emerging Bluechip Fund (G): Rs 5,000
Mirae Asset India Equity Fund - Regular (G): Rs 6,000
Franklin India Ultra Short Bond Fund (G)- 1,00,000 (lumpsum)

I don’t see any positive return in my portfolio. Can you please suggest if I am investing in the right mutual fund schemes? Do I need to change my portfolio? My risk profile is moderately high/aggressive, and I am investing for long-term goals -- at least 8-10 years.

I want to invest Rs 5,000 per month for four years. Kindly advise me where should I invest this additional amount?
--Kunal Patnaik

The performance of your portfolio reflects the current depressing scenario in the stock market. Most equity schemes are struggling as the market sentiment continues to remain weak.

Mutual fund advisors typically ask aggressive investors with a very long investment horizon to invest mostly in mid cap and small cap mutual fund schemes. However, you are currently investing in a sector scheme, aggressive hybrid scheme, large & midcap scheme, multi cap scheme, ultra short duration scheme, and two small cap schemes. Only small cap schemes and large & midcap schemes are in line with your risk profile. Sector schemes are also risky, but they are meant for sophisticated investors. Ultra short duration schemes are meant for park money for a few months. Aggressive hybrid schemes and large cap mutual fund schemes are meant for conservative equity investors, whereas multi cap mutual fund schemes are meant for moderate investors.


As you can see, your mutual fund portfolio is focused. If you do not understand much about investing in mutual funds, you must consult a mutual fund advisor in your locality for personalised advice.