Existing investors: Rebalance US equity funds portfolio, avoid exiting mkt

New investors should look beyond one-year data; enter via SIP route with a seven-year horizon

Equity funds focused on the United States (US) market have witnessed a sharp run-up over the past year. Returns range from barely positive to as high as 71 per cent. Both new and existing investors are currently worried about the prospects of these funds.

Tech-led rally that broadened

2022 was a difficult year for US equities, especially for the FANG (mega-cap tech) stocks. “Worries on account of the Russia-Ukraine war and high US inflation led to a correction in them,” says Kaustubh Belapurkar, director-manager research, Morningstar Investment Advisor.

In 2023, the rally was led by stocks dubbed The Magnificent Seven