Jan 01, 1970 3 min read

How To Deal Bull & Bear Market with Mutual Funds?

Bull & Bear Markets affect the investments of every investor and thus it is a must to know the ways one can deal with it. Read this blog to know how mutual funds help in dealing volatile markets.
A successful investment depends on long-term thinking. However, most investors can’t help and worry about day-to-day shifts of their investments in the portfolio. While some worries are justifiable which are caused by market volatility, some are simply not so important. The bull & bear market causing differences in the investment values act variably, and they need to be considered by every investor while taking the investment decision. If you too want to make your investment safely and desire to earn profits irrespective of the market moves, then you must read the blog further.

It is quite common that the investors seek to change their portfolio whenever the market moves affect their investment inversely. But instead of going for the same, slight changes and adjustments in the portfolio may help you in dealing with the situation aptly. Even if you are a small retail investor, you can benefit from making a simple alteration in your portfolio and tend to earn great benefits. So here you will learn how you can adjust your investments in order to deal with the bear and bull market fluctuations.

Understanding the Bear & Bull Concepts

History has shown that the stock market and economy cycles move over and over again and it is a must to get updated of all the stages in the market which may cause ill effects on your investments. The market conditions come in two broad parameters which involve bull & bear.

Bull markets refer to the time frame when investors show great confidence on their investments. It is a situation when the values of the market tend to rise with at least 20% resulting in profits for the current investors. On the flip side, the bear markets are just opposite of the bull market. Here, the prices of the stocks tend to fall resulting in heavy losses. This is a scenario where the investment values of type of mutual fund to invest in tend to reduce for a continuous period without any hopes for increments in the near future.

Adjusting Portfolios in a Bull & Bear Market

As we have understood that bear market is all about losing confidence in the economy, investors must make a slight change in their current portfolio giving rise to the debt investments. The debt mutual funds, which invest the capital in the bonds, money market and other debt instruments, offer a regular interest or income at a fixed percentage irrespective of the market conditions. By parking your money in such securities, you would be able to confirm financial stability even in the bear market. Moreover, the investments in the Bluechip Funds can also be considered for securing the investment values in the bear market.

In case the of bull markets, where the prices are rising higher, investors must feel confident in taking high risk in their investments. They should opt for equity fund schemes for their portfolio by considering their asset allocation graph. Moreover, there are various emerging markets which perform tremendously in the bull market, and investors must park their funds in such markets to ensure the high growth of their invested capital.


Investors should not feel pressurised to change the portfolio radically in order to cope up with the market moves. A small variation in the investments can be of great help for them for making their money secure and earn profits irrespective of the volatility. The mutual fund investments have such varied instruments that assist in dealing every critic situation in a hassle-free manner.

If you too desire to manage your investment portfolio with experts’ advice, then you must avail our free of cost financial advisory services. MySIPonline and its entire team feel pleasured to serve the needs of every investor in the most convenient manner.

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