Anand Rathi CEO: Stop Sitting On Cash Waiting For Correction — SkimNews
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- Feroze Azeez, joint CEO at Anand Rathi Wealth Limited, recommends aligning cash allocations with the time horizon of each goal — 1-2 year goals in debt, 2-5 year goals split between equity and debt, and goals more than five years away in a growth-oriented approach.
- Azeez suggests long-term portfolios allocate 60-80% to equity with the remainder in debt-oriented products, gradually shifting toward stable assets as the goal date nears.
- The equity portion can start with roughly five funds across large cap, mid cap, small cap, flexi cap, and multi cap categories, while the debt portion can use target maturity funds or arbitrage funds based on tax bracket and liquidity needs.
- Azeez advises keeping an emergency fund covering at least six months of expenses plus adequate term and health insurance so investors don't have to break into long-term investments during unfavorable markets.
- Investors don't need to wait for a correction — lump sum, staggered (STP), or SIP deployment are options, but Azeez warns that waiting risks missing market gains while frequent portfolio changes increase costs and can carry tax implications.
Why it matters: Investors who sit on cash waiting for a correction risk two stated costs: missing sustained market rallies while they wait, and layering on transaction costs and tax friction if they keep reshuffling. Azeez's prescription — deploy cash against a goal-based asset mix (60-80% equity, remainder debt) — gives idle savings a defined purpose instead of an open-ended market-timing bet.
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