Dhirendra Kumar sheds light on how to decide the equity allocation of your portfolio
What should be the equity exposure in my portfolio?
For most people, there should be a meaningful fixed income allocation. So, if you have a very long-term portfolio and you are venturesome, then your asset allocation should be something like 70-75 per cent in equity, while the remaining amount in a fixed income. So, if equity does dramatically well in a brief period of time, then you should move a part of your money into the fixed income to restore the original asset allocation.
This can be reasonably achieved with an aggressive hybrid (balanced) fund without you worrying about maintaining the asset allocation. To put it in a nutshell, your equity allocation is entirely a function of your comfort level and how far you are from your goals.