Sensex, Nifty at an all-time high today: 3 strategies stock market investors should follow now

It’s common for markets to reach new highs. Although they may seem like the pinnacle, historical data suggests that markets generally have an upward trajectory, with occasional downturns and volatile periods.

Predicting market peaks and lows is difficult. Consistent investing over time can lead to potential compound returns and help you average out the cost of your investments.

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Do remember that your investment plan should based on your risk tolerance, time horizon, and financial goals. Stick to your long-term goals, don’t deviate from long-term strategy due to short-term market movements.

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Rebalancing your portfolio is one of the best strategies to follow when the equity market is at an all-time high. If equity allocation in your portfolio is increased significantly, consider rebalancing it. The rebalancing strategy includes reducing equity and increasing debt investments to achieve the desired mix.

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The ideal asset mix is typically — 60% in equity and 40% in debt. When the market is at an all-time high, consider selling equities and use that cash to make more investments in debt.

If you are not in favour of selling equities and you have money to invest, consider increasing debt investments until you restore the asset mix to the original ratio — 60% in equity and 40% in debt.

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