Stick to your SIPs; not the time to raise allocation to equities: Vetri Subramaniam

“So, there’s actually a case to perhaps even reduce equity allocation for some investors but I would say that’s fewer and far between those who really managed to increase their allocation at the lows, for most people I would say, just stick to your plans, just stick with your SIPs. It’s certainly not a time to raise your allocation to equities just because it seems so exciting. That’s the wrong thing to do,” Subramaniam explained.

He further said, “It’s always the case that when valuations are cheap, it is accompanied with uncertainty, doubt and fear, similarly when valuations are rich, it is very often accompanied with supportive news or the economic data looks good, suddenly we have 20-20 vision in what the earnings will be in FY23 and FY24, it’s important to remember that one-and-a-half years ago, people didn’t know what the future looked like two days out, so that’s really the distinction that I would make that yes, perhaps everything looks bright today, but stick to the asset allocation, don’t get carried away.”

For the entire interview, watch the video