How balancing Debt and equity works

RAJESH

16 November 2008, 16:09:31

If you are a long term investor the following method will be of great help

simply divide your investment in the ratio of 50:50

When the equity market goes up you would be required to sell your shares and buy debt if the market goes up you would be required to sell debt and buy shares this way you will be avoiding the dangerous trap of buying high and selling low.

I strongly believe this would work well in long term

Re: How balancing Debt and equity works

Amal

23 April 2009, 06:34:45

Dear Rajesh
Right and wrong. You are right that asset allocation works. i give you full marks. But wrong in marking the percentage on it you cannot generalise on the percentage of what should be ones allocation pattern. Secondly you can have more number of assets besided the debt and equity. it could be gold or currency or some thing else also.
Not that to belittle you just to clear the point for others that yes asset allocation works but one has to sit and plan it with a good advisor and then implement this.



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