Watch out for commodity funds

Mutual funds cater to the needs of investors having different in MFs should be based on the individual's risk appetite, willingness to take risk and the investment time horizons. In other words, individual needs and circumstance should get translated into an appropriate mix of assets in equity, debt and cash. Existing diversified funds with the major part of the portfolio of people willing to take equity market risks. Through for any market risk. Through for any market linked instrument, past performance is not an accurate guide; a track record of consistence performance suggests that a fund has good investment management skill that can help it navigate choppy markets in the future as well.
Equities are more rewarding over longer period and are very volatile in short and medium terms. One way to curb volatility is to invest in phases systematically on regular interval. The best way to marginalize the impact of volatility on your portfolio is to invest through Systematic Investment Plan(SIP), which works on the principle of rupee-cost averaging, does not require you to try timing the markets. So, anytime is the best time for SIP.
As for major fund categories, the average return from diversified equity schemes was a robust. Looking at the interest rate volatility and its northward inclination, the potential risk in the debt market has risen and hence, it looks better for the risk-averse investor to focus on short term plans and Floating Funds. Investors willing to take marginal risk may look at MIPs as the small exposure to equities may help in getting better returns but at the same time also run the risk of loss.