Should I stick to large, mid cap mutual funds? Or shift to flexi cap funds?

I have been investing in large-cap schemes (Axis Bluechip Fund, Canara Robeco Blue Chip Fund) and mid-cap schemes (Axis Mid Cap Fund, PGIM India Midcap Fund) since the last four years. I am quite happy with them. As per my understanding by reading so many analysis and your suggestions, flexi cap schemes are best suited during this volatile time for moderate investors. So, I have been investing in Parag Parikh Flexi Cap Fund for the last one year. I see that flexi cap schemes are doing poorly compared to large cap and mid-cap schemes for the last one year. Would you suggest moving to any other flexi cap fund or just stick with large cap and mid-cap funds?
-–Md Nazim

We always ask our readers to choose their mutual fund schemes based on their goals, investment horizons, and risk profile. If you have chosen your mutual funds based on your personal asset allocation plan, you may continue with your investments. Some categories may perform better than others at some point - but it doesn’t make those schemes superior. You should not chase returns. The basic idea is to match risk and returns. An aggressive investor may take a lot of risk to get better returns. However, a moderate investor may not be able to take that kind of risk to get higher returns. Such an investor should be happy with modest returns.

We don’t recommend mid-cap schemes to moderate investors because these schemes invest mostly in mid-cap schemes and they are highly risky. We ask moderate investors to choose flexi cap schemes because these schemes have lower risk than mid-cap schemes. This is not to say that one category is superior to the other. But it is suitable for a different risk profile.