Outsource asset allocation to a fund

Raising equity allocation when the market is down and reducing it when it is soaring is difficult. Let dynamic asset allocation funds do it for you

My friend Anand called me a few days ago. He sounded crestfallen. He had kept in touch with me through the pandemic-fuelled crazy ride in the stock markets. Back in March 2020, when the Nifty had fallen to around 7,600 and fear was at its peak, I had coaxed him to stay invested in his existing equity mutual funds as his goal was due only 10 years later. I convinced him to look at his asset allocation, which was well below his target.

Although I could not convince him to increase his investment in equity funds, at least he stuck to