Anand Rathi CEO: don't wait for the right market entry — SkimNews
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- Feroze Azeez, joint CEO at Anand Rathi Wealth Limited, recommends aligning cash allocation with financial goals by time horizon — 1-2 year goals kept in debt, 2-5 year goals using an equity-debt mix, and goals beyond 5 years taking a growth-oriented approach.
- For long-term portfolios, Azeez suggests allocating 60-80% to equity with the remaining balance in debt-oriented products, gradually shifting toward more stable investments as the target date nears.
- Azeez recommends building an equity portfolio with around five funds spanning large cap, mid cap, small cap, flexi cap, and multi cap categories, with the right combination depending on existing holdings and diversification needs.
- For the debt sleeve, Azeez points to target maturity funds or arbitrage funds, with the choice hinging on the investor's tax bracket and liquidity needs.
- Azeez advises maintaining an emergency fund covering at least six months of expenses alongside adequate term and health insurance, to avoid liquidating long-term investments when markets turn unfavourable.
- Azeez argues against market-timing — investors who wait for the perfect entry risk missing gains as markets continue rising, and can deploy cash via a lump sum or staggered approach instead of leaving it in a savings account indefinitely.
Why it matters: For the substantial pool of investors holding cash on the sidelines, Azeez's framework offers a concrete starting point — a 60-80% equity allocation for long-horizon portfolios and a goal-based test for how much cash truly belongs in savings. The deeper warning is opportunity cost: the source notes markets can keep rising while investors wait, eroding the value of any 'perfect entry' that never comes.
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