This is very critical for every investor and this asset allocation should have broad categories of stocks, bonds - both corporate and government etc. This process is not so easy and has to be derived based on investment objectives and needs, risk taking capability and time horizon. This portfolio should be rebalanced as and when there is a signification change in the value of your assets in your kitty.
No body on this earth can determine the low or high of stock market or for that matter any market. However, we will know that market is at peak or low comparatively. So when it’s at peak, invest less and book profits at the earliest. And when the markets are low, invest more systematically and allow it grow. And after it reaches its target, reduce your exposure by selling some stocks and invest your profits in safer instruments.
Just like you and I can have a portfolio, mutual funds also have a pre determined portfolio. Though some AMCs display portfolio and fund allocation details, some don’t.