Investors can keep 70% of the portfolio in long-term investments while the rest 30 percent could be in liquid cash.
Indian market will continue to remain volatile in the near term largely on account of upcoming US elections as well as a rise in COVID infections and the resultant lockdown in countries across the globe, but that will be an opportunity for long term investors, says Kunj Bansal, CIO, Karvy Capital.
In The Market Podcast with Moneycontrol, Bansal said that it makes sense for investors to divide their portfolio in two parts. Investors can keep 70% of the portfolio in long-term investments while the rest 30 percent could be in liquid cash that can be used at times of volatility.
“Investors should segregate their portfolio between trading and long term investment. Broadly, 70% of the total exposure of the portfolio should be long term while the rest 30% could be for trading where one can cash calls whenever the time is right,” he said.
“For the 30%, it makes sense for investors to remain in cash not just because we are approaching the outcome of US elections but also because we have seen market moving in just one direction in the last six months,” he said.
Tune in to the podcast for more.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Oct 30, 2020 05:14 pm