Should I sell Principal Emerging Bluechip Fund?

My mutual fund portfolio is:
Axis Long Term Equity Fund: Rs 30,000
Principal Emerging Bluechip Fund: Rs 1,500 via SIP
Reliance Pharma Fund: Rs 1,000 via SIP
ICICI Prudential Value Discovery Fund: Rs 1,000 via SIP (I started this six years ago, and it is performing very well)
Kotak Standard Multicap Fund: Rs 1,500 via SIP
HDFC Liquid Fund: Rs 3,000 as lumpsum
I have started investing in these schemes 10 months ago. Principal Emerging Bluechip Fund is giving negative returns. Does my portfolio look okay? My risk appetite is moderate. Suggest best funds for long-term investment.
--Mahadev Sawant

An investor with a moderate risk appetite should invest mostly in multi cap mutual fund schemes. The investor can also take small exposure to large cap mutual fund schemes if she wants to diversify the portfolio.

You are currently investing in an ELSS fund, large & midcap scheme, sector scheme, value-oriented fund, multi cap scheme, and liquid scheme. Large and midcap scheme and pharma sector schemes are risky for a moderate investor. Midcap exposure of 35 per cent in large & midcap scheme can be risky. Similarly, sector funds also carry higher risk.


Also, you should review the performance of the schemes you have invested at least once a year. However, do not rush to sell the schemes that are underperforming for a short period. You should always give a year or two for your schemes to perform. If the scheme is doing better than its benchmark and category, you should stay put. Do not chase the best scheme as top performers keep changing every month.