The answer to your question lies less in market prediction and more in how you will respond to certain scenarios. Theory has an answer but it's not a theoretical decision!
It was about half a century ago, that Mutual Funds first set shop in India. Unit Trust of India(UTI), which came into existence from an Act of Parliament in 1963, launched its maiden scheme “Unit Scheme 1964” (fondly shortened to US-64 by investors). Private sector funds joined the industry after SEBI came into existence and scripted a set of regulations for Mutual Funds.