New Delhi, Sept. 6 -- If you are uncomfortable with the amount of equity in your portfolio and are considering reducing it, take a step back and review your short- and long-term financial goals first. The way you began investing can have a significant bearing on how you view your portfolio today.

If you feel you have too much money invested in equities, it is useful to look beyond current market conditions. Instead, consider why you are investing, how much time you have and when you will actually need the money.

For instance, if retirement is still 20 years away, there may be a strong case for keeping a relatively high allocation to equity. Depending on your financial position, expected returns and risk tolerance, an allocation of aroun...