Watch out commodity funds

Mutual funds cater to the needs of investors having different risk appetite. Investment in MFs should be based on the individual's risk appetite willingness to take risk and the investment time horizon. In other words, get translated into an appropriate mix of assets in equity, debt and cash. Existing diversified funds with a good track record should form the major part of the portfolio of the people willing to take equity market risks. Though for any market linked instrument, past performance is not an accurate guide, a track record of consistent performance suggested that a fund has good investment management skills that can help it navigate choppy market in the future as well. Equities are more rewarding over longer periods and very volatile in short and medium term. One way to curve volatility is the systematically on regular interval. The best way to marginalize the impact of volatility on your portfolio is to invest through systematic investment plan, which works on the principle of rupee cost averaging, does not require you to try timing the market. So anytime is the best for SIP.