Originally Posted by stk_chk
I was contemplating some of these options as well.
I am particularly worried about Small cap fund SIP so I have reduced the SIP contribution to minimum starting next month onward and diverted that amount to Largecap fund (for better perceived safety vis-a-vis small cap). At least this way, sort of minimizing the risk to the overheated segment while participating in the rally through largecap.
I have SIPs running for 5+ years, amount is substantial and this craziness in market is giving me jitters. I too am contemplating booking profits in small and mid cap mutual funds by selling one year old ones and moving that money to large cap. But not to tinker with current sip's. Option 3 that is.
A single bad news. an accident a black swan, will bring all this crashing down.
24+ PE is very expensive. I don't think earnings will go up so much as to justify these insane prices. But yes there is long term SIP money coming in every month, which needs to be deployed within the same stocks available in the market. This may not allow the market to fall much.
Domestic funds are now not minuscule compared to foreign funds as it used to be in the past.