What should an active investor do, faced with a sharp market correction like the one occurred last Monday? The optimists would say, "Buy on the decline". The more cautious would say, "Wait for momentum to turn positive.
Last Monday, many investors would have been reminded of this Warren Buffett quote: "Unless you can watch your stock holding decline 50 per cent without becoming panic-stricken, you should not be in the stock market.
In the past year, the top five mutual fund (MF) performers in the equity large-cap segment are IDBI India Top 100, LIC Nomura MF Growth, Kotak 50 Regular, JP Morgan India Equity and UTI Top 100. Their returns are between 21 and 25 per cent.