Partial profit-booking in equities is a good option for investors

After touching the 50,000-mark intraday on a couple of occasions, the Sensex finally closed above this level on Wednesday. Investors should look at the weights of various asset classes in their portfolios and realign them, if required.

Return to original asset allocation

One time-tested way to deal with the dilemma of whether to stay invested or exit equities at such high levels is to adopt the asset allocation approach.

“Most investors’ portfolios would have got heavily skewed towards equities due to the rally. Do some profit booking and bring your equity allocation back to its original level,” says Ankur Maheshwari,