Where should I put my Rs 10 lakh today when the Sensex hits 70,000?

 Where should I put my Rs 10 lakh today when the Sensex hits 70,000?

Despite the fact that stocks are still among the greatest long-term asset classes, experts advise caution due to their all-time high valuations.

Proper asset allocation is crucial, but investors also need to remember how critical it is to have the appropriate insurance and emergency savings.

On December 11, the benchmark Sensex crossed the 70,000 level, marking a significant milestone. Nonetheless, it is critical for investors to keep in mind that investing is a long-term endeavor. This indicates that long-term investing objectives and plans should take into account the short-term market swings.

Over the last year, Indian stocks have performed well, and gold prices have increased as well. Furthermore, given that interest rates are now at an all-time high, fixed income assets seem appealing.

Experts advise determining your risk tolerance and knowing your financial goal before making large stock purchases.

"Avoid investing based on emotions and rushing for quick profits. Fight the impulse to act on whims influenced by market noise. Nitin Rao, CEO of Incred Wealth, advised investors to "stick to your investment plan and avoid emotional trading."

To reduce possible losses, make sure your portfolio is diversified and that you are allocating credit appropriately. Don't give up on your long-term asset allocation plan in an attempt to make quick money.

How can someone invest Rs 10 lakh at this point?

Prioritizing financial stability is crucial before making any investments. Obtaining a comprehensive health plan and a quality term insurance coverage should be everyone's first priority.

Nearer to your objective?

Preserving money should be the primary aim for everyone approaching retirement or reaching their goal. This would be the ideal moment to shift out of equity and put money into debt if you have a goal you want to accomplish in the next six to eighteen months.

"We're not sure how the market will behave... Mid-caps and small-caps have seen significant price increases, and values are now being offered at a premium. It would be a good idea to transfer funds from equities to debt if one has reached or is almost at their goal, according to Rushabh Desai, founder of Rupi with Rushabh Investment Services.

Arrange your financial holdings.

With robust economic fundamentals and optimistic market sentiment supporting it, the Sensex has risen more than 13 per cent since the year's start. This year, the Nifty 50 has done little better than 15 percent. Despite the fact that stocks are still among the finest long-term asset types, at these record-high levels, prudence is advised.

"In this environment, with markets at higher levels, I would recommend long-term investing in an equity-oriented strategy for someone with long-term goals who is aware of equity risk." Additionally, given the current surge in small- and mid-cap values, large-cap-oriented strategies need to be favoured, according to Tarun Birani, founder of TBNG Capital Advisors.

Bonds and equities are mixed together in dynamic asset allocation or balanced advantage funds according to the relative merits of each asset type.

Adhere to blue chips.

Long-term participants in systematic investment plans (SIPs) should adhere to their asset allocation and choose funds according to their risk tolerance and time horizon.

Lump sum investments in mid-cap and small-cap companies would not be advised at this time because of their significant gains and high valuations. According to BSE statistics, the S&P BSE Midcap and Smallcap indexes have increased by around 40% year to far.

However, as compared to mid- and small-cap stocks, large-cap stocks are now underperforming and have decent prices. Therefore, for fresh lump sum equities investments, I would wager on large-cap index funds like the Sensex or Nifty 50, or I could even select flexi-cap funds, which lean more toward large-cap stocks,” stated Desai.

An investment advice for Rs. 10 lakh

The founder of Full Circle Financial Planners & Advisors, Kalpesh N. Ashar, advises young individuals in their 30s who are actively investing to allocate 25–30% of their portfolio to debt mutual funds.

Rate reductions might occur after interest rates peak, which would be advantageous for fixed income funds. Thus, he advised allocating debt 50:50 between liquid and medium-to short-term (AAA-rated) bond funds.

Usher advises that, given the current state of the market and the approaching general elections, it would be best to invest only 20% of total assets to stocks in one lump payment, with the remaining amounts to be paid over the course of six months using a systematic transfer plan (STP).

The allocation of equity may be distributed across flexi-cap, pure large-cap, and hybrid funds. Moreover, some allotment could end in the middle.

Cap and small-cap funds, once again via STP channels," Asher said.

Although the appropriate resource 

While allocation is crucial, investors should also remember how vital it is to have enough emergency savings and the appropriate insurance coverage.