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Recognize equities is a volatile asset class. However, while it is volatile over the short time, when the time period is elongated, volatility is less relevant.
To reduce anxiety, don't look at your equity investments everyday. Spread your investment over a period of time and don't invest at one go -- use STP kind of mechanism to make volatility work for you.
When fund manager invest in quality stocks where business is robust and management is competent, stocks bounce back even when there is a big correction. So stock quality and selection is key.
To reduce risk - don't take aggressive bets and don't get carried away either positively or negatively.