My portfolio returns are negative. Can I switch between these mutual fund schemes?

I am 34. I am investing Rs 10,000 per month each in HDFC Small Cap, HDFC Mid Cap, Franklin Prima and Franklin Smaller Companies. My horizon is 10 years. Currently my portfolio returns are negative. Can I switch from small and mid cap funds to large or multi cap funds? Please advise.
Vidya Bala Co-Founder, PrimeInvestor.in replies: Since all your investments are in mid and small-cap funds, the 2018-19 correction in this segment has hit your portfolio. Consider a 70:30 equity:debt portfolio with allocation to mid and small-cap funds at not more than 25%. The rest should be in multi-cap funds with varying strategies (value and growth). In debt, consider low-risk short duration funds. Stop SIPs in current funds and start in new funds. Do not sell the current holdings as they are all sound funds.

I took a home loan of around Rs 30 lakh from SBI with the Maxgain-OD option 3 years ago. The outstanding now is Rs 27 lakh and the interest is 8.35%. I had parked around 80% of my home loan amount in the OD account to reduce the interest rate. Is that a good idea? Should I invest it elsewhere to earn better returns?
Raj Khosla Founder and Managing Director, Mymoneymantra.com replies: Given the availability of surplus funds in hand, it is a good idea to park money in the OD account. SBI Maxgain OD is a perfect home loan product for anyone who wants to use surplus funds to fast track loan prepayment while enjoying flexibility to withdraw along with reduced interest and tenure. By parking 80% of loan amount in the OD account, you are indirectly yielding 8.35% on your surplus amount each year.

Mutual funds investments are subject to market risk. SIPs can yield good returns—10-12%—but the investment needs to be for the long term, preferably 8-10 years. The returns are not guaranteed and even 8.35% is an ambitious target for the short run. With the current approach, you are saving on the interest component by reducing 80% of the principal amount. Further, within 2-3 years your loan will be successfully prepaid and you will be debt free. Once you are debt free, consult a financial adviser to plan your retirement.