Peak market strategy: Don't exit equities, keep investing new money

The key is to remain invested; rebalance your portfolio if required as market touches new highs

The Nifty closed above 20,000 for the first time on September 13 and has climbed further since then. The mid- and small-cap indexes, too, appear to be on steroids, having outperformed the large-cap index by a wide margin. Investors must avoid the extremes of greed and fear in such an environment.

The Nifty consolidated for about 18 months before it began its ascent over the past six months. During the period of consolidation, foreign institutional investor (FII) flows had turned negative. Nonetheless, the market remained stable and did not correct heavily because FII outflows were balanced by inflows from domestic