I have been investing in the Tata Small Cap Fund for the past year, but the returns are negative. Should I continue investing in this fund, or would it be better to switch to another small cap fund? My investment horizon is more than five years. -Mithra, Chennai
Our rating for Tata Small Cap Fund is given below.
| SL No. | Scheme Name | Category | Geojit Star Rating |
| 1 | TATA Small Cap Fund | Small Cap | 4 Star |
A 5-star rating means the fund is one of the best in its category, and 1 star means it is the least preferred.
The funds which currently have a 5-star and 4-star rating are considered as funds with strong performance, and you can continue investing in the fund.
I have a home loan of Rs. 15 lakh with a tenure of 15 years. When I approached the bank to make a prepayment, the relationship manager suggested that I invest the surplus money in mutual funds instead of prepaying the loan. I am now confused about which option would be more beneficial – prepaying the home loan or investing in mutual funds. Could you please provide proper guidance on this? – Alex, Mumbai
Deciding whether to prepay your home loan or invest in mutual funds depends on various factors such as your loan interest rate, the EMI, the loan tenure, expected returns from mutual fund investments, your risk tolerance, stability of income, etc.
If the interest rate is high and you are not comfortable with market volatility, priority should be given to prepayment of loan.
On the other hand, if your loan interest rate is relatively low, say 6% to 7%, and you are willing to take some market risk, then you may consider investing in equity mutual funds (assuming an expected return of 12%).
I am a 36-year-old working woman planning to accumulate wealth for my long-term goals such as children’s education, their marriage, and my retirement. My investment horizon ranges from 10 to 25 years. I plan to invest Rs. 10,000 per month and approached a mutual fund distributor to suggest a diversified mutual fund portfolio suitable for these goals. He recommended the following five funds – Nippon India Large Cap Fund, HDFC Multi Cap Fund, ICICI Prudential Flexi Cap Fund, Motilal Oswal Mid Cap Fund and Bandhan Small Cap Fund. Are these funds a good selection for my financial objectives and time horizon? I would appreciate your expert guidance on this. -Neelima, Ernakulam
Given below is our rating for the funds mentioned above:
| SL No. | Scheme Name | Category | Geojit Star Rating |
| 1 | Nippon India Large Cap Fund | Large Cap | 5 Star |
| 2 | HDFC Multi Cap Fund | Multi Cap | 5 Star |
| 3 | ICICI Prudential Flexi Cap Fund | Flexi Cap | 4 Star |
| 4 | Motilal Oswal Mid Cap Fund | Mid Cap | 5 Star |
| 5 | Bandhan Small Cap Fund | Small Cap | 5 Star |
A 5-star rating means the fund is one of the best in its category and 1-star means it is the least preferred.
All five funds listed above fall in the 5-star and 4-star category, which indicates they are good performing funds, and you can consider investing in these funds.
