Investors should resist the temptation to switch mutual funds simply because another scheme is delivering better returns, financial advisers said at the Business Standard Smart Investor Arena 2026. Instead, they should assess whether their investments continue to serve their financial goals and investigate the reasons behind a fund’s underperformance before making changes.
“Once you buy something, unless your life circumstances have changed, avoid changing it for at least three years,” said Vishal Dhawan, co-founder of Plan Ahead Wealth Advisors, during a session titled A Smart Investor’s Guide to Choosing Mutual Funds.
Dhawan was speaking about the importance of giving investments time to perform according to their intended role in a portfolio. He cautioned against confusing the monitoring of investments with the decision to sell or switch schemes.