He has heard stories about investors who made a lot of money riding the bull market cycles over the past two decades. He is focussing on two funds that have done spectacularly over the past year to invest his savings in. The top performers in a bull market are typically hit hard if they are not positioned right during a correction. Besides its performance in a bull market, he has to check if it has done a good job in protecting downside losses in falling markets. To ride on their past momentum, fund houses may even launch new funds promising to invest in these focus sectors of the past.

Source: Economic Times August 21, 2017 00:56 UTC