Whenever I buy any mutual fund,I will also buy a good gilt,bond and liquid fund too.I always do that.
I usually have 5% money in my debt fund. Then, the moment my equity gain gets to 50-70% of my principal amount and i am seeing that the market is going up very fast without any correction,and it seems there will be some volatility,i will immediately start moving my equity fund money to debt fund and i will stop once i move 50% gain to my debt fund.
There could be some situation where the market will possess false correction,in that case i will still need to wait for reverse-move to my equity fund.
Once market start correction,we don’t know when the market will stop and where,so it is better i move back money to 7-10% correction.
See these condition is not always ideal. Sometime market keeps moving back and forth,in that case i will stop the movement in my portfolio.
But i will still be able to improve my portfolio by 60-70% for the next upward trend.
So my debt fund is only for future plan and fund parking.