Various metrics used by mutual funds!

All mutual funds use various indicators & metrics to gauge the volatility or riskiness of the market, such as standard deviation, beta, volatility index, etc and to assess the valuation of the equity market, such as price-to-earnings ratio, dividend yield, market capitalization, etc. They adjust their equity exposure based on whether the market is calm or turbulent and whether the market is overvalued or undervalued. All mutual funds also use various methods to identify the direction and strength of the market trend, such as moving averages, trend lines, chart patterns, etc. They increase or decrease their equity exposure based on whether the market is in an uptrend or a downtrend.