Industry participants, however, say the run-up in market prices may not be enough to improve the sentiment of investors
But investors who want the flexibility to alter their asset allocation may avoid these 3-in-1 funds
At present, the market is favouring very select quality stocks that have managed to maintain their earnings even in difficult economic circumstances
The investor should also be able to evaluate the quality of the promoter-his background, competence level, and even his hunger to make it big
Instead of trying to pick individual stocks, take the mutual fund route
Stick to high-valuation blue chips or switch to low-valuation big stocks, or small caps?
India is going to be the next China. It will be a foreign flow magnet, says Sundaram Mutual Funds MD Sunil Subramaniam
Broader market indices hit 2.5-year lows after falling over 11% in July
The fund has consistently outperformed the benchmark (S&P BSE MidCap TRI) and its peers
Here are some large-cap funds you can choose from
With category average returns of 16 per cent in the past year, mid-cap funds are the favourites of small investors today. But, you need to pick the right fund. As data show, the best-performing fund has returned 26.75 per cent and the worst-performing one has gained a measly 2.3 per cent. Investors should aim at picking a consistent performerRelative to large-caps, the mid-cap universe also has a higher degree of variation in quality of business. Mid-cap companies offer better growth opportunities but are also characterised by a higher degree of volatility in performance. This leads to commensurate volatility in their asset prices as well.A long-term investment horizon and a disciplined and consistent investment philosophy using the systematic route help in exploiting this combination of better growth, higher volatility and a more heterogenous mix.Understand the risk-return trade-off. Invest through time-tested funds that have shown consistency in their investment style.