Investors often feel anxious when faced with short-term losses in mutual funds, especially during volatile market conditions. Bhavana Chaudhary, who has invested ₹6,000 monthly in SBI Mutual Fund schemes, is currently experiencing a loss of around ₹10,000 after 20 months. Pankaj Mathpal, a financial expert, emphasizes that equity investments typically require a minimum horizon of five years to yield meaningful returns. He advises against small-cap funds for new investors due to their volatility and suggests reallocating her ₹4,000 monthly investment from a small-cap fund to a more stable flexi-cap fund, specifically the ICICI Prudential Flexi Cap Fund. This strategy not only diversifies her portfolio but also mitigates risk during market fluctuations. Mathpal highlights that new investors should start with stable fund categories like flexi-cap or multi-asset funds to better manage volatility. Overall, maintaining a long-term perspective and appropriate asset allocation is crucial for achieving financial goals.