New Delhi, Sept. 2 -- Investment professionals and financial planners have long advocated a properly diversified investment portfolio. Investors who work with a financial advisor and follow that advice will generally have a reasonably balanced portfolio. DIY (do-it-yourself) investors, however, tend to chase returns, allocating more to the asset class that has delivered higher returns or one they are more comfortable with.

For many investors, that asset class is equity. More conservative investors, or those who have not yet ventured into equities, tend to favour fixed-income products such as fixed deposits. The practical implications of an equity-heavy portfolio are worth examining.

Current situation

Since the peak in September 2024, I...