Moving money from fixed deposits to riskier plans will increase volatility

Most financial planners believe that destabilising your portfolio, just for the sake of a quick buck, will not bring excessive incremental returns

Financial planners are a worried lot nowadays. With an almost secular rally in the stock markets, and the Nifty50 at over 10,000 points, investors who have maintained a good part of their portfolio in fixed deposits for years are now enquiring if it makes sense to move money from these instruments to equity-oriented balanced funds or monthly income plans (MIPs). It also seems that many distributors are encouraging this move. “We hear that even many distributors are aggressively promoting these schemes to customers,” says Suresh Sadagopan, a certified financial planner. 

Clearly, the saying that risk perception goes down when the