Wealthy investors rework portfolios amid sharp run-up in equities

Shift portion of investments towards real estate, credit funds

Wealthy investors are reviewing their asset allocation after the sharp run-up in equities over the past two months, reallocating gains to either fixed income assets or residential real estate.

“We have downgraded eq­uities from overweight to neutral since September. While the economic recovery has been better than expected, valuat­ions are rich and seem to have run ahead of fundamentals,” said Rohit Sarin, co-founder, Client Associates, a private wealth management firm.

The benchmark BSE Sensex has gained 25 per cent since November and is up more than 90 per cent from its March lows.

Within the fixed income space, investors are