Indian markets are at all-time high. Many investors are worried and in confusion if they should book some profits and enter again when market falls. Let’s say you execute this thought and book some profits thinking market will fall. But what if market keeps breaking new highs every day and continues its upward journey. You might end up having some regrets.

When it comes to equity markets, investing at the lowest point and exiting at the top is only a matter of luck as it is impossible to predict the top & bottom of the market. Therefore, the best strategy is to stay always invested. “Time in the market is more important than timing the market”.

Generally due to market cycles portfolio tends to change its alignment and can get biased towards one asset class. In today’s scenario most investor’s portfolio will be skewed towards the equity because of stellar returns due to Covid 19.

So, what should you really do?

1. If the goal is far away, then you should continue investing without getting carried away by market levels.
2.  If you are 100% invested in equities, then it is a good time to book some profits and shift money to debt according to your short term and long-term goals.
3. If your equity exposure is higher than you planned. For example, you started with 65% equity and now it is 75%, then book 10% from equity and shift back to debt. This is called Re-balancing.
4. If you are holding mutual fund schemes more than required then its is a good time consolidate. https://malpaniinvestments.com/2020/07/5-ways-to-simplify-your-investment-portfolio/
5. And if equity exposure is less than what it should be then don’t make any changes to your portfolio.

Conclusion:

Irrespective of market levels, don’t act sentimentally or emotionally. Take informed decisions. Make changes as per your goals, risk appetite and investment horizon. Don’t forget in the long term, market rewards disciplined and patient investors. Continue with your monthly investments. If you have lumpsum money to invest then spread it over 6-8 months and move on.

If all this is too confusing, then give us an opportunity to help you optimize your portfolio.

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A Good advice is always worth listening!!!

About Us: Malpani Investments specializes in Investment Advisory and Planning. Our Mission is to provide financial freedom to our clients by understanding their financial goals and helping them plan, save, invest and be disciplined, so that they can stop worrying about money and lead a happy and healthy life.  We help them understand personal finance in order to eliminate the gap between where they are now financially and where they want to be. Helping them with a suitable investment decisions so that they can give more time to their family, health and life aspirations. [email protected] / +91-7738637572