Should I Exit Reliance Vision Fund?

I have invested in Reliance Vision fund in 2004 with a time horizon of 10 years. But since last year the returns from this fund is moderate. Reliance Growth on the other hand is giving good returns. Should I switch to Reliance Growth Fund?

This is the most common mistake that everyone do while investing in the mutual fund. The mistake is – Comparing the returns of large cap funds with the midcap funds. Reliance Vision is the large cap oriented fund which primarily invests in the large cap stocks while Reliance Growth is a Midcap fund which primarily invest in Midcap stocks.

So it is obvious that, the mid cap fund will deliver more return than the large cap fund with high risk. So ideally you should not compare midcap fund returns with the large cap funds. You should compare midcap to midcap and large cap to large cap fund returns.

You should compare Reliance Vision with other largecap funds like SBI Magnum Contra, DSPBR TIGER or HDFC Top 200 funds.