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Should I book profit and reinvest?

Dhirendra Kumar explains if it's wise to time the market

My long-term portfolio is currently returning 30 per cent. Should I book the profit and invest again?
- Rajesh Chandra Gupta

This is a dilemma for many people as the market has been able to hold its ground despite the pandemic. I would suggest you make some asset allocation changes instead of booking profits. To avoid regret in the future, move some part of your corpus from equity to fixed income. Do not try to time the market perfectly by taking money out and investing again.

Many people who did this last year in anticipation of the crash are left in the lurch. They are just waiting outside the field and that too at a time when the market has made one of the biggest moves, though in a fairly unexpected manner.

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