Is it time to book profits in equity and deploy funds elsewhere? Arun Kumar answers

economictimes.indiatimes.com:

" The starting point is fairly simple that whenever there is an all-time high, there is a natural sense of unease for most of us because usually you hear the fact that you need to buy low, sell high," says Arun Kumar, FundsIndia.com.So, time to rebalance a strategy, maybe that one should be adopting in their portfolio from time to time. But then right now, what kind of rebalancing and revamping in the portfolio are we talking about? Obviously, a lot depends on the kind of goals you have lined up with. But then, if one is really heavy in some department of equity, do you think it is time to just maybe book profits and deploy that fund somewhere else? The starting point is fairly simple that whenever there is an all-time high, there is a natural sense of unease for most of us because usually you hear the fact that you need to buy low, sell high.

So, the moment that you hear sell high, you kind of tend to associate with the all-time highs. And generally, there is this unease that there might be a market fall after this. And you add to the fact that the last four times, almost for one and a half years, the Sensex has kind of got stuck in that 60,000 mark.

So, every time it comes to the 60,000 levels, there is a 10-15% correction. So, we had four times where it touched 60000-62000 then again it fell. So, this time again, most people were expecting probably for the same pattern to repeat but again, it has overshot that.

So, the first level of understanding would be that the all-time highs are nothing to be worried about because if you technically think about it, most of us would say I would expect say around 10-12% from it. So, let us take 12%. In other words, you are saying that the Sensex or the Nifty should double every six