We have now reached 46 months since the last market decline of 10% or more — the third longest stretch since World War II.

Although markets are overdue for a pullback, investors need not be fearful. Ups and downs are a normal part of investing. On average, the market has experienced a 10% decline every 11 months. By focusing on their long-term goals and financial plan, investors can take market volatility in stride.

At Hefren-Tillotson, we typically recommend mutual funds that are more conservative than average. Investing in conservative funds sometimes leaves money on the table during a strong bull market, but often means a measure of protection during down markets. Good downside protection can help investors stick to their financial plan, even in the depths of a bear market.

The adjacent table lists Morningstars Risk Rank for equity funds that commonly make up the core of Hefren-Tillotson client portfolios. The Risk Rank is a measure of a funds historical downside risk. Higher numbers indicate funds that have shown less historical downside risk than peers, with 100 indicating less risk and 1 indicating more risk.

Given the generally conservative nature of these funds, we believe investors should feel confident about the ability of their portfolios to weather inevitable market declines.