Market looks risky; time to be little conservative and have some fixed income allocation: Dhirendra Kumar
«Wherever anybody invested, one has made money. Not only that, last three-four years, I do not think at any point in the last three-four years, we have not had this discussion that market looks expensive,» says Dhirendra Kumar, CEO, Value Research.
There is a time when you buy equities, you would be disproportionately rewarded. But there are times when you invest into equities, your future returns will get compromised. Are we in that phase for next three years where every equity investor now needs to take a hard look at their asset allocation toward equities and say, okay, it has been good last two or three years, it is time for me to check my equity allocation. Maybe 15, if not 15, at least 10% should be moved into fixed income instruments.
Dhirendra Kumar: It does depend on how experienced that investor is. If that investor came three years ago, it would be very difficult for anybody to persuade him to move to fixed income because he has just been used to a different kind of market.
Wherever anybody invested, one has made money. Not only that, last three-four years, I do not think at any point in the last three-four years, we have not had this discussion that market looks expensive.
Market looks risky. Market looks dangerous. One should be a little more conservative, cautious. But I would say that given that we are getting into another gush liquidity from interest rate cuts elsewhere, I think things have turned around.
Market might remain expensive. I do not think it is time to cut short, but, every investor,
