WAY IN AND WAY OUT

Funds offer poorer protection on the downside than before. This means a buy-and-hold approach works for only a few funds and you would have to be lucky to choose the right funds all the time. Most funds appear reluctant to shift their holdings to cash, though they sense a market peak, for fear of an opportunity loss.

They tend, however, to make hefty dividend payouts, which could be used as a trigger to sell a portion of your holdings. As a matter of caution, always invest in equity only money that you do not require for the next five years.