HSBC Equity Fund is not alone. On March 9, 2005, Sensex hit a (then) all-time high. The market went through correction and then crossed the previous high. It would be interesting to study the NAVs of some Mutual Fund schemes between these two points in the index. Whereas the index has almost remained unchanged, some schemes completely recovered their losses and posted gains, while some "top performing" funds are yet to recover.
While Franklin Blue Chip has continued to under-perform, Franklin Flexi-Cap has posted gains (from NAVs below 10) since opening. Reliance Growth has performed well whereas Reliance Vision after years of splendid performance has not done so well. HSBC Equity and UTI Dynamic Equity, both of which have posted impressive one year returns are just about recovering.
ppatodia, if the much anticipated correction sets in, I don't know how this fund will perform. It's your call - if you have a mid-term horizon (atleast till the end of the year), you can try to hold on. Otherwise, try to switch part of the funds into some good scheme.