Should I exit Franklin India Smaller Companies Fund?

I am investing in Franklin India Smaller Companies Fund, but it is not performing well. I have incurred a loss of around Rs 15,000. I have been investing in this scheme for the last three years. I can invest in this fund for another two to three years. What should I do? Should I exit?
--Ranvir Negi

Tarun Birani, Founder and CEO, TBNG Capital Advisors, responds:

Franklin India Smaller Companies Fund has been underperforming in the short term. But if you look at the long term performance, its 10 years CAGR is around 15%. Therefore, I would recommend you to hold the corpus and continue to invest. It is a small cap equity mutual fund. The category is generally recommended to investors with over a seven-year investment horizon.