Be conservative at the top of the market. Be aggressive at the bottom of the market. Don’t inverse this behaviour.
Invest in debt. Debt is a capital protection tool, not a return tool. You won’t lose money investing in a liquid fund or an overnight fund. Even in other debt funds such as floating rate, ultra-short term, medium term, and dynamic bond fund, the chances of losing money are slim.
The aim is not always to make big money, it is to protect what you have (made). There are times in the market cycle when you invest to be cautious. The returns will be low or moderate, but capital protection takes dominance.
Investors who invested in debt in 2017, 2018 and 2019, specially in certain (debt) categories, and then switched to equity in the stock market crash of 2020 would have gained a lot. In March 2020, investors invested in equity to make money. Now, investors should invest in debt to protect their money (2021).
(excerpts from S Naren on how to navigate the equity market)
source: https://www.morningstar.in/posts/65517/sankaran-naren-navigate-current-market.aspx
