Should I sell L&T Emerging Businesses Fund?

I have been investing in Aditya Birla Sun Life Small Cap Fund and L&T Emerging Businesses Fund for the last two years. Both these funds have not been performing well since a very long time. Please suggest whether I should stay with these funds or exit?
-Rahul Shukla

You are investing in two small cap schemes. The small cap category has been going through a rough phase in the last one year. Most of the small cap schemes have lost over 20 per cent in the last one year. As you would know, small cap schemes are extremely risky and volatile in the short term, and they have the potential to offer superior returns in the long period. You should always remember the fact that these schemes can fall sharply during bad time in the market. You will have to give these schemes more time to perform.

L&T Emerging Businesses Fund is a topper in the small cap category. However, Aditya Birla Sun Life Small Cap Fund is an average performer.