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Here are the dynamic funds that held up better in falling equity markets

When markets turn volatile, exposure to a few fund categories can offer downside protection, as past data demonstrate

Business Standard 

Here are the dynamic funds that held up better in falling equity markets


  • Year 2018 promises to be volatile for equity markets, with the promising three or even four rate hikes and the too reducing bond buying
  • These measures could reduce liquidity and cause volatility in equities
  • Past data show that among equity fund categories value funds tend not to fall steeply when markets are declining
  • Since they don't invest in high PE, momentum-oriented stocks, they tend to correct less
  • Dividend yield funds invest in stocks that offer high dividends. The portfolio's dividend yield acts as a floor and stems its fall
  • Dynamic equity funds, which reduce exposure to equities as markets rise, are well placed when markets begin to fall
  • International funds offer diversification into foreign markets which don't always move in sync with Indian stock markets, and can therefore be a good hedge
Here are the dynamic funds that held up better in falling equity markets

Here are the dynamic funds that held up better in falling equity markets

First Published: Mon, March 05 2018. 05:46 IST
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