Move money that you might require over next three years out of equities

But avoid becoming excessively conservative as only equities have the ability to produce inflation-beating returns over long term

The Sensex fell 1,688 points, or 2.9 per cent, on Friday (November 26) on concerns that a new mutant strain of the Covid-19 virus could lead to a resurgence of the pandemic in Europe. Even prior to this episode, the equity market has been volatile. The Sensex is down 7.5 per cent from its peak of 61,765 on October 18, 2021. The unidirectional, upward trend seen in the market since April 2020 seems to have ended.

Stretched valuations causing jitters    

After the dream run lasting 18 months, equity valuations are on the higher side. “People are discounting FY 23-24 earnings. Now