Should I Reduce Equity % Allocation in My Portfolio now?

Are you worried about the rising markets? Are Indian markets overvalued? Are you unable to understand why markets are hitting new all-time highs when the real economy and things around you look fundamentally bad?

There is a constant noise about a new stock market crash coming.

When?

Some say very soon. Others say not-so-soon. But the fact is that no one knows. And it’s very hard to predict when that will happen.

If you lived through the March 2020 crash, then you will remember that the correction was sharp, deep, and extremely swift. Unlike the 2008-2009 correction, this new one did not give much time to investors.

Some feel that we are highly overvalued now and tons of low-quality IPOs in recent times is just indicator of that.

Please don’t get me wrong. I am not trying to convey that corrections are bad. Infact they are good and healthy. And a 5-15% market fall is pretty normal. The best part about market falls is that it gives you the opportunity to invest more at lower levels and hence, improve your future returns.

But the important question is:

How much Equity % to hold RIGHT NOW in your Portfolio?

We all know that Buy-Low-Sell-High is the right thing to do. But no one can be completely sure.

And if you are not sure, then you can never go for 100% equity or 0% equity depending on your view about markets. It is never about all or nothing in long-term investing.

So what is the best way forward?

Should you hold your equity allocation? Should you decrease your equity allocation? Or you should stay invested?

Is 70:30 Equity:Debt a good idea right now? Or being balanced with 50:50 is a better bet? Or it’s better to protect your profits and reduce equity to 30:70?

The answer will not only depend on the type of investor you are (Aggressive / Balanced / Conservative), but also on various other factors.

And this is where the Stable Asset Allocator comes into the picture.

Stable Asset Allocator

As mentioned earlier, you can never be fully invested (100% equity) or be totally out of the market (0% equity). You have to figure out a way to have the optimal equity % allocation at all times. Sadly most investors do not proactively manage their portfolios leading to the allocation becoming distorted over time.

Stable Asset Allocator is built on a Strategic + Tactical Allocation Framework. The model is adaptive enough to provide tactical tilts (based on constant evaluation of the market and economic variables), which dynamically adjusts your equity portfolio to be better positioned in the near-medium term and benefit from favorable conditions and skip bad days by avoiding unfavorable conditions.

What do you get when you Subscribe? 

  • Recommended asset allocation for your long-term portfolio (for goals that are at least 7-10+ years away). You get to know exactly how much Equity % and how much Debt % you to have at a given point of time.
  • The Asset Allocator provides Quarterly updates (in early March, June, September, and December). The model itself is monitored weekly and updated on a quarterly basis when the updates will be sent out.
  • It will provide an allocation strategy for 3 different investor profiles (Conservative, Balanced, Aggressive).
  • Do read more about it here.

What is the Annual Subscription Fee?

Surprisingly low – Rs 5000/- plus GST for the full annual subscription where you get 4 updates. So you are therefore getting a lot of benefit for the small subscription fee being charged. In fact, it is much lower than even one month’s SIP investment for most of you.

How To Subscribe?

Use the option below to make the payment via a Secure 3rd Party Payment Gateway.

To Pay, select “1” from the drop-down in the relevant ticket below. The “Processing Fee” you’ll see in the ticket goes to the payment service provider

Note –

  • Once you make the payment successfully, you will receive a payment confirmation email from the gateway in some time.
  • The updates from the subscribed product will begin within 24 hours of confirmation of receipt of payment. In case you do not receive it in 24 hours, please send an email with payment details.
  • If the above payment method isn’t working, please use this link to make the payment.
  • In case you are facing any issues with subscribing to the products, please reach out to me on email at stableinvestor@gmail.com

So if you are getting worried about your equity portfolio and whether it’s the right time to rebalance your portfolio, then Stable Asset Allocator can really help you make the right decision.

And let me clarify something upfront. It’s not a market prediction tool. It is simply a tool that tells you what a good asset allocation is at this point in time, given the current market conditions and the type of investor you are.

So for example:

  • In an overvalued market (which is also not expected to do well in the near term), it might say that conservative, balanced and aggressive investors should have 10%, 20%, and 30% in equity respectively.
  • On the other hand in an undervalued market (which is ripe to move up very soon on improving factors), it might suggest that conservative, balanced and aggressive investors should have higher equity at 30%, 55%, and 70% in equity respectively.
  • The figures mentioned in the above 2 points are sample ones and not the actual ones.

And please don’t be confused about SIP and the Existing Portfolio. It’s not just about starting our stopping your SIPs. Your existing portfolio is much larger than your SIP amount and needs to be handled much more carefully when deciding how much to rebalance and how much to keep in equity in current market conditions.

So if you are unsure about how much equity to have in your portfolio, then do try Stable Asset Allocator.

And if you have been regularly facing problems in deciding how much to keep in equity and how much in debt, then Stable Asset Allocator can really help you out with its quarterly updates about the right asset allocation (i.e. how much equity % and debt % to invest in) for your long-term goals. So consider starting your subscription to Stable Asset Allocator right away!

Note – If you feel you are capable of handling your asset allocation properly, then this tool is not meant for you. But if you are one of those investors who genuinely need some help getting their equity allocation right, then you should this tool seriously.

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