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Diversify portfolio to guard against risk in equities, say experts

Earnings of India Inc, too, have seen good growth, albeit on a low base, in the past few quarters

foreign portfolio
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Among debt funds, investors should stick to shorter duration funds as interest rates are now closer to the bottom

Sanjay Kumar Singh New Delhi
The S&P BSE Sensex closed above the 60,000-mark for the first time last Friday. The benchmark has seen a heady rise of 131 per cent from its March 23, 2020, closing low of 25,981. Factors like easy liquidity, record low interest rates, decline in Covid-19 cases, optimism about the economy’s revival, rising vaccination, and buying by both foreign portfolio (FPI) and domestic investors have fuelled this climb. Amid such conditions, retail investors should avoid falling prey to both overconfidence and fear.

Risks exist in medium term

Experts concede that the current market rally is more liquidity than fundamentals driven. Says

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First Published: Sep 27 2021 | 6:02 AM IST

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