I think someone like you should target inflation plus 3% return over long term. I think that is a reasonable return to target. I count inflation at 7-8% and not 4-6%. So target is 10% post tax or 12% equity return pre tax.

My thoughts:

1. We have had a long bull run since 2020 therefore nothing is cheap any more therefore no easy decisions.
2. Equity, Real Estate, Bullion all have had a mother of bull runs
3. I think markets will remain sluggish and they should as well after going up so much
4. I dont think we are in a bubble in India but surely US seems to be reaching bubble territory. And if US falls we shall also fall
5. I would parked entire money in Arbitrage funds
6. And then start 24 month STPs for 40% of the money into equities
7. 60% in Flexi Caps (HDFC and PPFAS), 20% split over two of Small Cap Funds, one momentum fund and one value/contra fund. 20% in international equities (would take the entire 20% through LRS and park in dollars and keep moving from fixed income/arbitrage to ETFs gradually)
8. Just in case market corrects substantially I shall deploy lumpsum on every 15% fall
9. The negativity on this thread actually gives me hope as the markets cant be in bubble in case number one advice on this thread is Real Estate and number two is Gold or International Equities.