The medium-term outlook for equity markets is not positive due to various domestic and global factors. However, there are opportunities for savvy investors to tidy up their finances and take advantage of market corrections.
While rebalancing your portfolio, it s crucial to address risk in line with your risk tolerance. Adjust sectors or stocks that exceed your comfort zone to align with your model portfolio s risk.
We typically park our money in fixed income instruments for safety. These investments help counter the fluctuations of higher-risk assets, such as equities, providing a degree of stability to the portfolio. This shield can only work if the fixed income part of the portfolio is resilient to adversity. For this, having a proper mix of fixed income assets is critical.