This is an equity fund with a focus on mid and small sized companies. According to the November 2011 portfolio, around 83 per cent of the equity portfolio is in mid and small cap stocks.

This fund is not the best in its category - 'Equity: Mid & Small Cap'. It holds a three star rating indicating that there are plenty of better options to select from. But then, it's not the worst either. Take a look at its trailing returns and annual returns and you will see what we are saying.

The fund was launched in November 2007, just before the extreme turmoil that the market witnessed in 2008. Sure, the net asset value (NAV) is below the Rs 10 mark, but it has shown positive returns over a longer period.

It is futile to predict the future. If you need the money, sell. If you do not, then you can hold till the market shows some sign of recovery. But for the future, as an investor, you need to understand the inherent risk when investing in equity funds and take a look at its performance with regards to the benchmark and the category.