This is the time to rebalance your portfolio wisely. The Sensex is just short on 500 points to be on the benchmark of 50,000 which was a distant dream to achieve last year.
India is a developing country and hence it is attracting Foreign institutional investors (FIIs) along with allocating incremental surpluses. The domestic investors have been pulling off more profit from the pool.
FIIs have been hugely selling in Indian equities through April 2020 and domestic institutional investors had the exact opposite in the last three months.
The individual investors don’t need to bother with such statistics. The inflows in the pool of equity mutual fund reflects Rs 13,000 crores, went out in December 2020.
The deployment of the new scheme in December 2020 collected around Rs 9,000 crore which appears like investors have pulled off money from the pool.
Although its true that the reinvestment will also happen may be at an all-time price, if it is done immediately.
Right now, everything is green and thus it is the right time to rebalance everything. Investors and traders should use the crest of 50,000 to make a quality shift.
Investors should utilize the value gained towards quality stocks or mutual funds as this kind of series often witness everything eventually growing up and falling down at worst.
Scanning the portfolio and weeding out the non-performers is very necessary at this stage as the market is always an unpredictable event.
Investors must hold a better strategy regarding their portfolio.
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