Where should we invest Rs.10 lakh today when Sensex follows the 70,000 mark?

So, you find yourself armed with Rs 10 lakh in the wake of Sensex breaching the 70,000 mark. Is it time to dive headfirst into equities? Or should you play it safe? 

Well to give you an overview, investing is a marathon, not a sprint, and the recent market highs are just a blip on the radar. Always assess your risk tolerance and goals to craft the right investment strategy. Remember, diversification is key, so do not keep your eggs in one basket. With a long-term vision and a prudent approach, you can reach your financial goals. 

Read the Moneycontrol article here:

Here are top 3 factors to consider before investing : 

Fortify Financial Foundation for Long-Term

In the investment realm, market fluctuations are the highs and lows of your long-term financial journey. The Sensex milestone? A checkpoint, not the destination. Before diving into investments, build your financial fortress. A solid term insurance policy and comprehensive health plan are your guardians in this investment odyssey.

Prioritise Goals and Protection

Peace of mind is priceless. Are you nearing retirement or saving for a down payment? Align your investments with your time horizon and preserve your wealth with debt funds. Basically, the main aim should be wealth preservation. 

Similarly, if your goal is set to be attained in the next six to 18 months, this would be the right time to get out of equity and park your money in debt.

Diversification is Key

While asset allocation is pivotal, don’t overlook the concept of diversification. These are your safety nets in a market of uncertainties.

For instance, stepping into investing at 30? Allocate 25-30% to debt mutual funds. A balanced mix of liquid and medium to short-term bond funds (AAA-rated) is prudent. Given the high market and impending elections, park 20% of you equity portfolio in a lump sum manner. The rest? Gradual STP over six months for a cautious entry into the equity market. 

SIP investor? Stick to your asset allocation. Large-cap index funds like Nifty 50 or Sensex are your steady companions. Resist the allure of mid-cap and small-cap stocks post their recent surge. Additionally, fixed-income investments appear attractive as interest rates are currently at a peak.

Closing thoughts

As you embark on this financial expedition, remember – goals, risk tolerance, and a pinch of caution are your best companions. Consider allocating a portion of your portfolio in fixed income instruments with Aspero. Discover a wide array of exclusive debt instruments across the risk spectrum and earn predictable returns of up to 14%