Reduce exposure to high-beta funds amid choppier conditions: Experts

On February 24, the Sensex declined 4.7 per cent as news came in of Russia’s invasion of Ukraine. Equity mutual funds’ trailing returns ranged between minus 7.2 per cent and 3 per cent on that day. Their one-month return ranged between minus 10.4 per cent and minus 2.1 per cent.

If your funds’ decline on that day left you unnerved, you need to re-examine your holdings. First, try to understand the source of underperformance. Then, cull out funds that are too risky.

Check market-segment exposure    

Are the funds you are holding large-, mid- or small-cap oriented? The latter two will take a