Ashutosh Gupta talks about the suitability to rebalance portfolio towards equity during the current market scenario
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I started investing in equity funds about 1.5 years back. My overall portfolio is still heavily skewed towards fixed income which I want to rebalance to 75:25 equity: debt. With markets at an all-time high, is it the right time for this over the next 18-24 months? It's a very significant corpus for me.
- Akshay Rao
Yes, SIPs are meant to take timing the market bit out of the equation. So you can continue with your SIPs and continue moving gradually towards equity to alter your asset allocation to 75:25.
Since you have mentioned that this is a very significant sum of money for you, I suggest you increase the duration of time over which you spread this money. So from 18 odd months, maybe you can look at a time frame of two-and-a-half to three years to spread this money. And if you are looking to invest for the long term and remain invested for another 10-12 years, you should be fine.