Equate your EQUITY

The stock market is at an all time high.Its roaring at 20,000 and the investment barometer is rising with the rise in the index.How do you plan to get better returns?
There is always a fear whether to invest in pure equity funds when such a situation arises.The best way is to invest in Balanced funds which is a combination of equity and debt funds.Equity should always be a small part of your investments even if you want to be on a safer side.Before investing in equities,try to access the Real Rate of Return as the measure for assesing returns on your investments which is nothing but return minus inflation.

Seeing the current condition,selection of funds in critical.The right way is to select a fund that is managed well and has been providing consistent returns.Select funds that will meet your objectives over time.Sometimes,undervalued equities turn to give out better results in this case.Its not advisable to jump into sector funds or mid-cap funds at all.If you plan to invest in Sector funds,take a close look into he performance of that particular sector in the past when such a situation arose.It could be a Banking or Healthcare sector.

A word of advice "Buy different BASKETS and different fruits and make sure the combination too varies in all the baskets. Diversification is the key".