75,000? Don’t be scared by levels. It is never late to invest

Irrespective of the level at which the leading indices are, they should allocate funds mainly into three asset classes — equity, debt and gold — and give those assets the time to grow, advisers say. “To create wealth, one should focus on three things which are in one’s control: The time horizon of investment, which is in conformity with the person’s return-volatility appetite and investing in good quality assets,” said Vineet Nanda, MD, Sift Capital, a Delhi-based financial advisory & wealth management firm.

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always insist on the process of asset allocation for every investor. Only the composition of the assets in the portfolio could defer depending upon age. Also, they say that it’s not ‘the timing of the market’ that’s important for , instead it’s ‘the time in the market’ that’s important.

According to Nanda, in the current , large-cap stocks and debt are a better bet like gold. A change in the interest rate cycle, through cuts in rates, is sure to generate profits for investors in these assets, he said. Large caps, on the other hand, although reasonably valued are less risky options compared to small and mid-cap, which are adequately priced in and currently look risky bets.

A similar approach could be taken by investors who prefer the MF route. They could invest in large, multi and flexi-cap schemes and avoid mid, small-cap and sectoral funds.