What are the best engineering courses to take besides computer science?

Ans: First, I appreciate your discipline in investing and reviewing your funds soon after you started. That habit itself is a strong pillar of long-term financial success.

» Understanding your current investment situation
– You invested Rs. 50,000 in an actively managed mid-cap fund (Motilal Oswal Midcap Fund) in July 2025
– You also invested Rs. 50,000 in a flexi-cap equity fund (HDFC Flexicap Fund) at the same time
– The mid-cap fund is currently showing negative returns
– The flexi-cap fund is showing around 4–5 percent return

» Why performance can differ between funds
– Mid-cap funds tend to be more volatile, especially over short periods
– Early investment performance is not a reliable signal of future outcomes in equity funds
– Actively managed funds can differ significantly based on stock picks, sector bets and market cycles
– Equity funds need time (typically 5+ years) to smooth out ups and downs

» What to assess before deciding to continue or switch
– Time horizon: How long can you stay invested? Equity should ideally be for medium to long term (5 years or more)
– Risk appetite: Mid-cap funds swing more than diversified equity funds and need higher risk tolerance
– Fund objectives and style: Does the fund’s approach match your goals and conviction?
– Consistency of performance: Compare returns over multiple periods (1 year, 3 years, 5 years) relative to peers, not just since inception
– Fund manager experience: Long-term funds often benefit from stable and experienced management

» Should you remain invested or switch? (Practical assessment)
– For the mid-cap fund showing negative returns early:

Equity markets can move up and down in the short term. A few months of red should not be the sole reason to exit if your time horizon is 5 years or more.

If your comfort with volatility is low, consider shifting part or all of the amount to a less volatile equity category or balanced equity oriented option.
– For the flexi-cap fund with modest positive return:

Flexi-cap funds dynamically adjust allocation across market caps and help moderate volatility.

If the fund continues to align with your risk and goals, holding it makes sense.
– Do not make decisions based on short-term returns alone. Give equity adequate time to perform.

» Why actively managed funds serve you better in your case
– Market benchmarks (like index funds) simply mirror market movements without risk management choices. In falling phases, index funds have no active decision to protect capital.
– Actively managed funds can take defensive steps when markets weaken, and reallocate to sectors or stocks with better risk-reward prospects.
– For individual investors, this active oversight brings discipline and better behavioral support, especially in turbulent markets.

» How to decide if switching is needed (Step by step)
– Re-evaluate the mid-cap fund’s long-term prospects rather than recent performance
– Compare its performance with similar actively managed mid-cap peers, not the index
– If you find its strategy, risk profile or management lacking, consider a more diversified actively managed equity option suitable for your horizon
– Avoid switching too frequently, as this can erode returns and incur costs

» Final Insights
– Stay invested if your time horizon is 5 years or more and you can accept volatility
– Early red in mid-cap is not a reason by itself to exit, but do assess comfort level
– Actively managed equity funds offer better risk management than passive index approaches
– Periodic review every 12–18 months, not monthly, should guide your decisions

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment