Volatile Stocks : Volatile Funds

When midcap and smallcap stocks fell like nine pins, with many of them hitting lower circuit (20% fall in a day), even the seasoned investors were taken aback. Though the crash could have been a bit of overreaction to news of scam etc, the erosion of portfolio is significant.

Mutual funds which are collection of stocks, did react to the fall. Those MF's which had maximum exposure to Mid and smallcaps fell the most. Here is a small list of the most volatile funds in yesterday's market.

Having this information in hand, what to investors do: Two things:

(1) Avoid high volataile funds for one shot investment.
(2) Consider such funds only for SIP's or VIP's