Sensex up 4,487 points since November lows. What should mutual fund investors do?

economictimes.indiatimes.com:

Sensex surging by 4,487 points from its November lows and reaching at the level of 81,289, the mutual fund expert believes that investors should adopt a diversified allocation strategy and should allocate 10% towards gold and 5-7% towards silver.

Experts suggest that after the above allocation, investors should allocate 20-30% in duration focused debt instruments and the remaining should be invested in equities through a staggered approach to mitigate risks associated with market volatility.

“Given the near-term weakness and macroeconomic moderation, investors should adopt a diversified allocation strategy. A prudent approach would be to allocate 10% towards gold as a hedge against inflation and market uncertainty, and 5-7% towards silver to diversify within commodities and benefit from industrial demand trends. Additionally, 20-30% should be allocated to duration-focused debt instruments, which can provide stability during volatility and benefit from potential future rate cuts. The remaining portion should be invested in equities through a staggered approach or systematic investment plans (SIPs) to mitigate risks associated with market volatility,” said Sagar Shinde, VP Research, Fisdom.

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“This allocation can be adjusted based on individual risk profiles, time horizons, and financial