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Rebalance your investments away from equities and gold in favour of debt

^{Published on 2024-12-05 10:30:51 - Business Standard}
 

• Equity exposure in portfolios is likely to have exceeded the original strategic level due to strong performance in equity markets, both domestically and internationally. Allocation to gold is also likely to have increased, as the yellow metal has also delivered robust returns.

The article from Business Standard, published on December 5, 2024, advises investors to rebalance their portfolios by reducing exposure to equities and gold in favor of debt instruments. It highlights that after a significant rally in equity markets, valuations have become stretched, suggesting a potential correction. Gold, while a good hedge against inflation, has also seen substantial gains, leading to concerns about its sustainability at current levels. The article recommends increasing allocations to debt, particularly through fixed income securities like government securities, corporate bonds, and fixed deposits, which offer stability and predictable returns in an environment where interest rates might have peaked or are expected to decline. This shift is seen as a strategy to manage risk and ensure portfolio diversification, especially in light of global economic uncertainties and potential market volatility.

Read the Full Business Standard Article at:
[ https://www.business-standard.com/finance/investment/rebalance-your-investments-away-from-equities-and-gold-in-favour-of-debt-124120501228_1.html ]

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