Why are my mutual funds performing badly?

I have investments in HDFC Hybrid Equity Fund, Franklin Smallcap Fund, HDFC Small Cap Fund. They are all performing very badly. What should I do?
-Himanshu Goyal

It is not possible to offer a comprehensive response as you have not said since how long you have been investing in these schemes. If you are talking about short-term performance of one to three years, it is true that most equity schemes are offering meager returns. It might sound strange at a time when the market is hovering around all-time high. The current rally is led by a handful large companies, and the hope of a broad-based rally still hasn’t materialised. It looks like the revival of the whole stock market would take place only when the economic growth pick up. Until then the market is likely to remain in the same mode.

Hope you are a long-term investor and you have the necessary risk to hold to these schemes.