Volatility will remain the theme for the year, said Gautam Sinha Roy, Fund Manager, Motilal Oswal Mutual Fund.

"Volatility will remain the theme for the year, which may not be worrisome. But if that means, you should be excited of getting into mid-caps, then the answer is no. It is advisable to wait, but if invested, stay put," said Roy.

Although, most of the rebalancing has taken place, some could have been left out and that is the reason for the volatility seen in the mid-caps," he said

“Use this volatility opportunistically as a fund manager, wherever possible. If you have a buying list and you are seeing the right prices, then use that," Roy said, adding that, some of the quality names have corrected 20% and one should use that opportunity to invest in them.

According to him, people who are invested into mutual funds should come into schemes with large-cap bias and maybe multi-cap but not go for pure mid-cap strategy right now.

However, for investors, they should always have a buying list and always use volatility as a friend, he said.

He said, “This year, post budget, there has been a drastic shift seen from portfolio management services (PMS) to mutual funds and high net worth individual (HNI) flows have come down.”

There have been some tapering of flows in systematic investment plans (SIP), but it won’t fall off a cliff, he said.