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Maintain your desired asset allocation and manage risk effectively. Calculate exactly how much to buy or sell to get your portfolio back on track.
| Asset | Current % | Target Value | Action Required |
|---|---|---|---|
| Equity | 60.0% | ₹6,00,000 | Hold ₹0 |
| Debt | 30.0% | ₹3,00,000 | Hold ₹0 |
| Gold | 10.0% | ₹1,00,000 | Hold ₹0 |
Current Total Value
₹10,00,000
New Total Value
₹10,00,000
Rebalancing ensures your portfolio doesn't become too risky if one asset class outperforms others significantly.
It naturally forces you to sell assets that have become expensive and buy assets that are relatively cheaper.
A systematic rebalancing approach removes emotional bias from your investment decisions.
Portfolio rebalancing is the process of realigning the weightings of a portfolio of assets. It involves periodically buying or selling assets in a portfolio to maintain a dynamic or original desired level of asset allocation or risk.
Most experts recommend rebalancing either on a time basis (e.g., every 6 or 12 months) or on a threshold basis (e.g., when an asset class drifts by more than 5% from its target allocation).
Yes, selling assets may trigger capital gains tax. In India, consider the holding period for LTCG vs STCG. Sometimes, rebalancing using new investments (buying under-allocated assets) is more tax-efficient than selling over-allocated ones.