There are no items in your cart
Add More
Add More
| Item Details | Price | ||
|---|---|---|---|
Rebalancing is the secret to long-term investing success. Learn when and how to rebalance your mutual fund portfolio — without second-guessing the markets.
07/07/2025
Your portfolio drifts over time. A 60:40 equity-debt mix can silently become 75:25 in a bull run — and you’re now exposed to higher risk.
That’s why portfolio rebalancing is crucial. It keeps your investments aligned with your goals and risk profile — not the market’s mood swings.
When Should You Rebalance?
✅ Time-based Rebalancing:
🔁 Sell overweight assets, invest in underweight ones
🎯 Use SIP adjustments or fresh investments to avoid tax impactReal-Life Example: Tara’s Balanced Strategy Tara started with a 70:30 equity-debt split in 2020. By end-2021 (bull run), equity became 80%.
She rebalanced — booking some profits and increasing debt allocation. In 2022's correction, her portfolio lost only 5%, while her friend Manu, who stayed at 90% equity, lost 15%. Lesson: Rebalancing isn’t just discipline — it’s risk insurance.Conclusion
Set and forget? Not wise.
Set and RECHECK is smarter. Rebalancing ensures your portfolio stays on track — regardless of market noise.Fix a rebalancing rule today — calendar-based or threshold-based.
Consistency is the real alpha.
Summary Table: Rebalancing Triggers & Actions
| Trigger Type | When to Rebalance | Action Required |
| Time-Based | Every 6–12 months | Review and realign allocations |
| Threshold-Based | 5%+ drift from target mix | Sell/buy to restore original ratio |
| Major Life Event | New goal / income change | Redesign asset mix |
| Market Crash/Rally | Rapid gain/loss in one asset | Adjust to maintain original risk level |
Dr. Satish Vadapalli
Research Analyst
Launch your Graphy