Portfolio Realignment.

Portfolio rebalancing is the process of realigning the weightings of a portfolio of assets to maintain the original or desired level of asset allocation and risk.

Over time, some assets grow faster than others, making your portfolio riskier than intended. Rebalancing brings it back to your comfort zone.

Most experts recommend rebalancing once or twice a year, or whenever an asset class deviates by more than 5% from its target.

It forces you to 'sell high' (assets that have grown) and 'buy low' (assets that have underperformed), improving long-term risk-adjusted returns.

While its primary goal is risk management, the buy-low-sell-high nature of rebalancing often leads to better long-term gains compared to a drifting portfolio.

It is a portfolio strategy that sets target allocations for various asset classes based on an investor's risk tolerance and time horizon.

A strategy where you rebalance only when an asset class's weight moves more than 5% away from its target percentage.

Yes. In India, selling equity or debt for rebalancing may trigger Capital Gains Tax (LTCG/STCG). Always consider tax impact before executing.

You can rebalance by directing new investments (like fresh SIPs) into the under-allocated asset classes until the targets are met.

Yes, selling and buying assets to rebalance will involve transaction costs and brokerage fees.

Portfolio drift occurs when the actual asset allocation deviates from the target allocation due to varying market performances.

Even small portfolios benefit from discipline, though you must ensure transaction costs don't outweigh the rebalancing benefits.

Yes, you can use a rebalancing calculator to determine how much to switch between different fund categories (e.g., Large Cap to Gold).

A passive strategy where you rebalance at fixed intervals, such as every 1st of January or quarterly.

Inflation might change your long-term goals, requiring a shift in your 'Target' allocation percentages over time.

Assets that move in the same direction. Rebalancing is most effective between non-correlated assets like Equity and Gold.

It doesn't stop market drops, but it ensures you aren't over-exposed to a single asset class when it crashes.

Our calculator provides the plan; you execute the trades in your demat or bank account.

A strategy where you rebalance only when asset weights hit a specific 'trigger' percentage.

Yes, this professional asset allocation engine by Shivam Sagar is 100% free for all Indian investors.