Lock some gains and keep 10-15% cash in your portfolio: Dipan Mehta

economictimes.indiatimes.com
7 min read
fairly difficult
At least some amount of cash should be left in the portfolio and you could trim your portfolios in stocks which have run up and are trading at very rich valuations.
Even if we do not have the same kind of outperformance in Reliance Industries like in the past 12 months, it remains a market performer and there are many waiting in the sidelines to get into Reliance, says the Founder & Director ofI like the thought that you should take some gains while it is still there and make some hay because at the ground level we are not seeing any improvement in the environment as far as consumption or demand or capex cycle or any of the regular economic parameters which we track are concerned. With the second wave of the virus infection within India and as well as globally, it is time to be a bit cautious. The markets may have run a bit ahead of themselves.The numbers that are coming through from the companies and what management commentary is that there is still a great deal of uncertainty and while there is a nascent recovery, there is no surety that this will continue going forward as well. So I am of the view that at least some amount of cash should be left in the portfolio and you could trim your portfolios in stocks which have run up and are trading at very rich valuations. As a portfolio manager and stock broker, we never advocate being in a very high proportion of cash in the portfolio. At this point of time 10-15% is certainly a fair level of cash to have in your portfolio.The assessment is right and gold is in a charging bull market and globally also, there is a shift towards the yellow metal because of whatever uncertainties are there in the global financial markets. that certainly benefits the gold financing companies. The profit booking in gold financing companies has a lot to do with the slightly disappointing results for the first quarter and also some of the gold loan companies which have diversified into non-gold businesses have not done well in the last quarter or so. That has impacted the sentiment mildly. I think these companies will do exceptionally well going ahead. Both Muthoot as well as Manappuram are available at…
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