Should I continue with L&T Emerging Businesses Fund?

I have started an SIP in L&T Emerging Businesses Fund (Growth, Regular), last May. Should I continue with the scheme? This is my first investment in mutual funds.
--Rahul Agarwal

It seems, you are concerned about the negative returns offered by the scheme in the last one year. You are investing in a smallcap scheme with an impressive track record. Smallcap schemes are meant for investors with very high risk-taking ability and stomach for volatility. We also believe that investors should opt for them only if they have an investment horizon of at least seven to 10 years.

Many new investors like you pick up smallcap schemes, focusing on the very high returns offered by them during a bull phase in the market, and start getting worried when they fall sharply during a bad phase in the market. You just have to reconcile to the fact that smallcap schemes are risky and volatile, but they also have the potential to offer superior returns if you give them seven to 10 years.