What to do if elevated equity market valuations give you sleepless nights

Book partial profits in equities and move into debt and gold, even if returns from these asset classes are poor currently

With the major indices like the Sensex and the Nifty 50 trading above the 60,000 and the 18,000 level respectively, investors are asking two questions: Should they book profits? And if they do, where should they put the money?  

Should you book profits?

Many investors wish to book profits because they feel that a correction is imminent in the equity markets after such a strong run up. Experts say that may not necessarily happen. “There is too much liquidity in the system for a steep correction to happen,” says Ankur Kapur, managing partner, Plutus Capital, a Sebi-registered investment advisory firm.