If market is at all time highs. Then should I move my Rs 50L equity portfolio to cash and wait for a crash?

Attempting to time the market by moving to cash is a fool's errand. Whether it is a bull market or a bear market remaining fully invested is the only way to capture long-term wealth.

Think about the 2008 financial crisis as a perfect example of why sitting invested works. A portfolio of Rs 10 cr dropped all the way down to Rs 5cr during that crash. The natural instinct or advice from others is to sell at least a third of the portfolio to protect capital.

But if you refuse to sell you avoid paying unnecessary taxes and you save yourself from the impossible task of guessing the exact bottom. Within just two year of that 2008 crash, the market recovered and that same portfolio bounced back to Rs 11cr. Market Gods has designed the market so perfectly that you cannot consistently get the tops and bottoms right :)

Beyond goal completion or asset allocation, you should only sell a stock or fund for two specific reasons. First, the underlying business thesis has fundamentally changed, like a traditional auto company failing to transition to EVs.

Second, you have found a significantly better investment idea and need to reallocate that capital. Otherwise, just sit tight and let the market do its thing.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.