Should I sell Reliance Focused Equity Fund?

I invested Rs 3 lakh as a lumpsum in Reliance Focused Equity Fund a week ago. It has already fallen by Rs 10,000. Should I continue to invest in the scheme? Or should I switch to some other mutual fund scheme?

-- Balaji Raghavendran

Raghvendra Nath, managing director, Ladderup Wealth Management, responds:

You should invest in equity mutual fund schemes with a long-term perspective. In the short term, equity schemes are always volatile. You need to have at least a five-year investment horizon to invest in equity schemes. Reliance Focused Equity Fund has been relatively underperforming for some time. You may stay invested in the scheme. But review the performance of the scheme after a year.

In future, whenever you are investing a lumpsum, invest in at least three schemes to diversify your portfolio. For any new investments, you can look at HDFC Equity Fund, Axis Bluechip Fund, Aditya Birla Sun Life Frontline Equity Fund and ICICI Prudential Value Discovery Fund.