The month was marred by intense volatility as equity markets rose and fell sharply with alarming regularity. It was a month in contrast for the benchmark indices. The CNX Midcap appreciated by 7.30% before settling at 7,994 points.

Conversely, the large cap indices i.e. BSE Sensex and S&P CNX Nifty closed the month in negative terrain. The BSE Sensex shed 2.39% during the month and closed at 19,363 points; the S&P CNX Nifty posted a loss of 2.34% to close at 5,763 points.

In November 2007, Foreign Institutional Investors (FIIs) were net sellers of equities to the tune of Rs 45,974 m (as on November 30, 2007). On the contrary, mutual funds were net buyers with purchases of Rs 28,366 m.

Incidentally, this month we profiled Sundaram Select Midcap Fund, a leading mid cap fund. Mid cap stocks tend to be more risky investment propositions as compared to their large cap peers. Mid cap funds imbibe similar properties.

Sundaram Select Midcap's performance is truly noteworthy on several counts. Not only does the fund have an impressive track record on the returns front over longer time frames vis-�-vis its peers, it also scores favourably on the risk parameters. Sundaram Select Midcap's impressive performance can in no small measure be attributed to its fund house's process-driven investment approach.

Tauras Discovery Stock (13.75%) emerged as the top performer in the equity funds segment. Reliance Media and Entertainment (11.39%) and ING Dividend Yield (10.78%) occupied second and third positions respectively.

ABN AMRO Flexi Debt (0.81%) occupied the top slot in the long-term debt funds category. Reliance Income (0.78%) and ICICI Prudential Income (0.76%) also featured in the top performers' list.

LIC MF Balanced (9.72%) topped the balanced funds segment powered by a superlative performance. ING Balance (2.89%) and Kotak Balance ( 2.34%) came in at second and third positions respectively.

At Personalfn, we have consistently emphasised the importance of not losing sight of one's risk appetite while investing. An often-repeated quote is 'one size doesn't fit all.'

In other words, investing is a rather subjective matter. What's right for one investor (say a high risk-taker) can be grossly unsuitable for another (say a low risk-taker).

More importantly, it must be understood that one's risk appetite is independent of market conditions. Hence there is a need for investors to appreciate that taking on higher risk to make the most of rising markets is unwarranted. In conclusion, adhere to your risk appetite at all times and you should do well for yourself over the long-term.

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