Step-by-step Guide to Portfolio Rebalancing

Published On: 04-Jul-2017

One should not keep all its eggs in the same basket. Such a piece of advice rightfully focuses on the importance of different asset classes within the investment portfolio. While one may have invested in various asset classes in an optimal proportion, the ratio can subsequently change due to the relative outperformance/ underperformance of different asset classes. It becomes vital for the investors to periodically rebalance the investment portfolio to keep it aligned with the investor risk appetite.

Here is a step-by-step guide to portfolio rebalancing:

 

01
Determine your target asset allocation Read More
02
Find the current asset allocation Read More
03
Formulate a rebalancing plan Read More
04
Consider the tax angle and exit loads Read More
05
Repeat the process periodically Read More