Are you all celebrating the all-time high Nifty in Indian Equity Market? Definitely, you should be, if you have Equity (Direct and /or Mutual Funds) as one of the important components of your portfolio. Yes, other assets like Debt Funds, FDs, and Gold also make their way into a balanced portfolio.

Will the market cruise to 20000, or will have a correction? Nobody can predict it with a guarantee. But, one thing has been proven: Nifty has never done a new low below the earlier Low.

In the chart of Nifty, you can see, that whenever there had been a correction in the Market; it has never gone below the previous low. From left to right it’s one way to the up. There were events like the following:

• The subprime USA crisis in 2008 when nifty touched 2252 and then bounced back. It made again some corrections in December 2011 (4531) and on August 13 (5118.).
• Then again, it bounced back to new highs, before making small corrections in February 2016 (6825) and November 2016 (7916).
• The steepest correction happened in March 2020 (COVID-19 pandemic) and the market bottomed out to 7511, going below the previous low for the first time but bouncing back and closing above 8590 ( above the previous low) in the same month.

Then it was History when the Market bounced back vigorously to 18600 (116% rise from March 2020).

Now, today after making small corrections in June 2022 (15183) and March 2023(16828), is back with a bang at an all-time high crossing 19000.

So, what exactly; I am trying to emphasize, that your portfolio must have a component of Equity for returns above risk-free returns and beating inflation. So, how much should be a share of Equity in your portfolio? It depends upon some important information.

+ Your Age
+ Your Profession
+ Your Risk Profile
+ Your major financial goals.

So, you need to review your portfolio and keep pace with the latest economic conditions. You should have both strategic as well as Tactical Portfolio management in place for better returns at minimum risk.