Should I stop my SIP in Reliance Small Cap Fund?

I am a first-time investor in mutual funds, and started an SIP of Rs 2,000 from January 2018 in Reliance Small Cap Fund (Growth). I am not happy with the performance of this fund because it is continuously going down. Please suggest something. Should I stop this SIP and invest in another fund?
-- Jeetu Gautam

You have not said why you have chosen Reliance Small Cap Fund. Nor did you offer crucial details like your goals, investment horizon and risk profile.

Smallcap schemes are meant for investors with a very high risk tolerance level. Smallcap schemes invest in small-sized companies. These stocks can be extremely volatile and risky in the short term. However, they may also offer extremely high returns for the extra risk over a long period. If you cannot stomach volatility and extra risk, you should not invest in smallcap schemes.


You should consult a mutual fund advisor before investing. First-time investors need a bit guidance and handholding. Only a reliable mutual fund advisor in your locality would be able to offer that to you regularly.