Answer Book question

My mutual fund is down 15%. What should I actually look at?

Three things: whether the whole market is down similarly (then it is the market, not the fund), whether the fund has changed its mandate or manager, and whether your own horizon has changed. If the answers are "yes, no, no," do nothing. Reviewing a long-term investment because of a bad quarter is how people sell low.

By Kerala Rising · ·

Short answer

Three things: whether the whole market is down similarly (then it is the market, not the fund), whether the fund has changed its mandate or manager, and whether your own horizon has changed. If the answers are "yes, no, no," do nothing. Reviewing a long-term investment because of a bad quarter is how people sell low.

Real life

An investor panics at a 15 percent fall. The Nifty is down 14 percent. His fund has done what it was built to do. His goal is a daughter's wedding in eleven years. The right action is to keep the SIP running.

What this means

Compare the fund to its benchmark over 3–5 years, not to zero over 3 months. Underperformance versus benchmark over several years is a reason to switch; market-wide falls are not.

What to check

Fund vs. benchmark over 1, 3, 5 years Any change in fund manager, mandate or category Expense ratio creep Your horizon and reserve

What people often miss

Judging a fund in isolation from its benchmark.

The Kerala / NRI angle

If you are within three years of needing the money, the problem is not the fall; it is that the money was in equity too close to the goal.

An example

Fund −15 percent, benchmark −14 percent: fine. Fund −15 percent, benchmark −4 percent, three years running: switch.

When this may not be the right answer

If the money is needed within two years, move it to safety regardless. and learn to shift money out of equity earlier next time.

What to do next

Check the benchmark Check your horizon Act only if one of them says so

Related questions

Should I stop my SIP when the market falls? Does SIP guarantee profit?

Related Kerala Rising help

Kerala Rising Money

Sources and what to verify

SEBI investor education material · AMFI · RBI guidance on deposits · Kerala Rising is not a SEBI-registered investment adviser; product selection is for a registered adviser Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Tell us the amount, where it is now, and what it is for. We will help you frame the question before you speak to a registered adviser. and tell you what to ask them. WhatsApp +1 443 595 9000 · keralarising.com Kerala Rising › Money › Investing · Money 17

Before you act

This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.