Is It Time to Change Your Mutual Fund ?

(Don’t rush your long-term wealth might depend on this decision.)

You open your investment app… and see red.
Your fund is not doing well.
You feel disappointed and ask yourself:
Should I change this fund?

You’re not alone. Many investors go through this phase. But sometimes, we act too quickly and lose the chance to grow our wealth.

Let me share a real example before we talk about what you should check.

HDFC Flexi Cap Fund – A Story of Patience

Between January 2015 and December 2016, the HDFC Flexi Cap Fund gave just 0.9% returns per year. It was ranked 29th out of 34 funds. The best fund gave more than 11%, and the top 5 gave around 8%.
Many investors thought of leaving it.

But over the next 8 years, the same fund gave a strong 18% annual return one of the top 4 funds in its category!

What’s the lesson?
Short-term poor performance doesn’t mean the fund is bad.
Sometimes, you just need to give it more time.

5 Things to Check Before You Decide to Switch a Fund

1. How long have you held it?

Are you judging the fund in just a few months?
Equity funds need 3 to 5 years to show real results.
Don’t rush.

2. How is it doing compared to other funds and the benchmark?

Some ups and downs are normal. But if your fund has been doing worse than similar funds and the index for a long time, it may be a sign to rethink.

3. Has the fund’s risk profile changed?

Maybe you chose the fund for safety, but now it’s investing more in risky stocks.
If it no longer matches your risk level, it might not be the right fit anymore.

4. Has the fund changed its strategy?

If the fund is suddenly investing in very different sectors or styles, that’s a red flag.
Make sure it’s still following the path you agreed on.

5. Has the fund manager changed recently?

A new manager may have a different way of investing. If returns have dropped after the change, it’s worth reviewing the fund more closely.

Final Thought

Changing a fund might feel like the right thing when performance is down.
But long-term investing is not about reacting to every fall. It’s about staying calm, reviewing the facts, and making smart decisions.

So before you make a switch, ask these 5 questions.
If most answers are still positive, your fund might just need time.

Let’s talk. I’ll help you understand your investments in simple language and guide you to the right decision.

Book a free consultation

Paresh Chaudhary,
Founder, Shree Radha Financial Services
+91 98791 13255
www.srwealth.co.in
shreeradha.services@gmail.com