Did you pass the volatility test?

In the process of deciding how your money will be invested in mutual funds, you answered questions that helped determine your tolerance to risk. You had to predict how you would react if your portfolio lost value, including by a significant degree.

Just about every investor’s prediction of their risk tolerance was tested during the past few years. In the first few months of 2020, the COVID-19 outbreak led to market crashes, and countless investors worried about their financial future. In 2021, markets were booming. Markets plummeted again in 2022 with global stock markets reaching or approaching bear territory. In 2023, markets bounced back.

As a mutual fund investor, how did you react to the market swings?

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