I’m not an active investor by any definition. However, I like to make sure my investments are somewhat adequately diversified to weather any storms that might be on the horizon. It’s no secret that some legendary investors are hoarding unprecedented cash right now, but even Indian fin-fluencers seem to be cautious right now after some crazy greed driven behaviours seen in the domestic markets recently. In light of changing market conditions, it makes sense to make some changes to my investment strategy for the next year (or two).

I’ve already paused all of the my SIPs aggressively investing into high growth mutual funds. I’m not cashing out any of my returns at the moment though, because I’m still very bullish on India over the very long term. So, I’m diverting 50% of the SIP funds to build a cash reserve that I will keep in a high yield savings account.

I’m not applying to any new IPOs, but this would make little difference since getting allotment has been akin to winning the lottery anyway.

With the other 50%, I’m buying into secondary sales of Sovereign Gold Bonds using the most discounted to fair value metric available on this very helpful analysis website. I’ll do this systematically until I’m happy moving back to equities again.

Note: This is not financial advice.