What Should be Your Equity Mutual Fund Strategy in 2022?

 Many stock fund investors are looking for an aggressive approach in 2022. Additionally, they want to invest in stock funds and themes that have been performing well recently. However, financial advisors advise caution and believe investors should invest in equity funds  on a risk-based basis. risk tolerance. For example, market-experienced investors with a higher appetite for risk  invest in small-cap funds, sector funds, flexicap funds, and theme funds. These funds are affected by market volatility compared to large cap, safer investments. Investors should only invest in equity funds  if they have a long-term investment horizon. For example, many newcomers to stock investing aim for short-term returns. However, they often get into stocks and stock funds after an uptrend. This means that they could suffer huge losses during a stock market correction. If you're already an  investor in equity mutual funds with a portfolio that suits your risk appetite, you can continue.It helps to avoid sector and theme funds if you have a lower risk appetite. For example, these funds are tactical calls and you need to get in and out at the right time to maximize your returns. However, financial experts recommend avoiding excessive risks in order to achieve higher returns. into equity funds in 2022. Helps as COVID19 cases surge globally and remain a threat to the global economy and stock markets.