Risk tolerance & investment plan!

Markets always goes through phases of volatility. So, even if you are invested in direct equity or equity mutual funds for the long-term, over a period your risk tolerance may change. That is when you might find it difficult to continue with your investment plans. It is essential to review your investment plan on a yearly basis. You may want to change to say a hybrid mutual fund or for that matter spread your investments across more asset classes. Risk tolerance is influenced to a certain extent by market volatility.