Should I sell Franklin India Bluechip Fund?

I invested in Franklin India Bluechip Fund (growth) in February 2014. I stopped investing in it from this month as the fund is not performing since last few months. I don't want to redeem units received so far from Franklin India Bluechip Fund since I have got only 6 per cent returns from it. Should I hold it? Can I expect good returns from this scheme in future?

I mostly invest in largecap schemes. My investment as of now are:

1 Axis Long Term Fund : Rs 1,000
2 ICICI Prudential Value Discovery Fund : Rs 2,000
3 ABSL Frontline Equity Rs 3,000
4 HDFC Top 100 Fund Rs 3,000
5 L&T Hybrid Fund Rs 4,000
6 Kotak Muticap Fund Rs 4,000
7 Franklin India Bluechip Fund Rs 2,000 (stopped it now)
8 Mirae Asset Emerging Fund Rs 3,000

I want to take another fund instead of Franklin India Bluechip and HDFC Top 100. Should I go for smallcap and midcap? If yes, which one to replace these two schemes.

My risk appetite is moderate to high and my goal is to build a corpus of around Rs 1.8 crore in 15 years. I am 33 years old.
--Sanju Vm

Franklin India Bluechip Fund is a conservative largecap scheme that was known for its consistency. The scheme was famous for managing downsides well. However, the scheme has been faltering in the last few years. It is lagging both its benchmark and category in the three- and five-year horizons. If you have started your investment on February 1, 2014, you would have earned an annual return of round 7.5 per cent. You did right by stopping your investment in the scheme. You can also consider selling the scheme and shifting the money to another better performing scheme.

You should go for mid and smallcap schemes only if you really have an aggressive risk appetite. Do not consider investing in these two categories just because largecap schemes are not offering great returns. Largecap category is relatively less risky, and it will offer moderate returns. Midcap and smallcap schemes are highly risky and volatile. If you are ready to take the extra risk, they may offer higher returns.