The fund re-opened recently, lots of money flow in due to funds 'historical performance'. For me I don't look at fund performance over short term, usually need to gauge >5 years, ideally 10 years. Earning stability is much more important than one time performance. Also look at the fund turnover, if it is more than 100%, that means the manager is actively trading and not investing. I hold smallcap fund since 2001, so I am not the least worried. Lipper and Morningstar are good guides but your own due diligence is more important. Also look at the overall stock market PE ratio before you buy, to avoid getting caught during bull run. Now KLSE's PE ratio is about 17x, 2011 forward PE is 15x is it cheap or expensive? You decide.