As an asset type, equities are known for their superior wealth creation potential during the period of the last few decades. Since India's Liberalization, Privatization, and Globalization (LPG) reforms began in 1991, the Nifty has increased by 50 times. However, the trip has not been straightforward, with multiple periods of high volatility.

For example, a 30 percent correction occurred in February-March 2020, and the returns since then have been as impressive. As a result, the current surge has enticed many retail investors to enter the equity markets, and many retail investors have adopted the DIY equity investing method.

The fact that 1.5 crore new Demat accounts have been opened in the previous 18 months demonstrates this. While it is great to see Indian youngsters investing in the stock market, there is concern that the new generation of investors has only seen the markets rise and has not seen much drop in their portfolio.

There is always the chance that investors would get carried away with the early upswing, but the true litmus test will come when the markets fall and investors must emotionally be able to view their portfolio in losses without panicking and making poor investing selections.

Certain things do not change over time, and Greed and Fear are two such emotions from the standpoint of equities markets. Greed and Fear have hampered the ability of investors to make sensible decisions throughout history (and have indeed repented later).

When everyone is afraid, and asset classes are accessible at reasonable prices, one must invest. Returns on investments are seldom linear in nature. The market/return company's would always rise in a non-linear manner, regardless of how sound it is.

Following the market's dramatic rise over the last 18 months, the most pressing topic for investors is how to position themselves in the current market climate. The longer-term picture for the markets, in our judgement, is pretty positive.

Government policies are favourable to accelerating growth. The budget for 2020 marked a watershed moment in the government's stance, with budgetary prudence clearing the way for CAPEX-led growth. Global monetary policy is also likely to alter slowly but remain positive for a long time, which is also beneficial to growth.

Despite the fact that present prices are no longer enticing, the market is encouraged by growing profitability, rising ROEs, enough liquidity, and dramatically deleveraged balance sheets.

However, as we continue to rise, investors must be aware of the market's inherent behaviour, which is Greed vs. Fear. Currently, fear is largely absent from the surroundings.

Portfolio rebalancing is a tried-and-true method of resolving this conflict and avoiding panic in the event of a drawdown or strong reversal. For a better investment experience, investors should continue to rebalance their portfolio according to their asset allocation needs and risk profile on a regular basis.

The single most significant factor that determines an investor's long-term success is discipline.

Instead of constantly looking for new themes or trends to invest in, investors should take a portfolio strategy, with asset allocation being the most important decision that any retail investor can make.

While equities are an important aspect of a wealth-building portfolio, investors should also be aware of other investment vehicles in order to develop a diversified portfolio with steady and consistent returns.

If an individual lacks the necessary skill sets to pick stocks, he can invest in equities through different alternative investment vehicles such as ULIPs, Mutual Funds, and so on.

The onerous process of selecting new themes or trends would be left to professional money managers/fund managers.

Volatility, strong up moves, and corrections are all natural parts of the markets and will continue to exist. But it is staying on track and maintaining investment discipline that distinguishes a successful investor.

If you're looking to invest for the next five to ten years, you should concentrate on the opportunity and how to take advantage of it. One should keep investing and keep rebalancing their portfolio in accordance with your objectives.