As a general rule, I advice keeping cash in portfolio.
In case of a correction, this cash helps buy stocks at cheaper valuations.
Something in the range of 5-10% of portfolio is always advisable to be kept as cash.
Right now, I’m maintaining the minimum 5% cash in hand ratio. As & when I feel there’s market euphoria, I’ll book some profits and raise this cash levels.
Keeping some cash in portfolio rather than fully invested has brought me peace. It gives me a worry free sleep & conviction that in case correction comes, I’ll be able to buy the dip with the cash in hand.
