Episode 104: How to rebalance your portfolio

Asset allocation allows investors to select funds across assets. Rebalancing a portfolio is changing asset allocation to generate high returns. Asset allocation and portfolio rebalancing are probably the most important, yet overlooked, aspects of investing. For many, simply investing is enough and they think it is not important to decide on the weightage of different asset classes in the portfolio. On the other hand, some people get extremely stringent about the allocation and often tend to overdo the rebalancing. Both are dangerous. Rebalancing portfolio and asset allocation are crucial for providing stability to a portfolio as well as to earn substantial profits. Therefore, investors must ensure they select the right assets and rebalance their portfolio periodically (as required) in case of a change in their financial objective or risk appetite. But, many investors might have a few questions, such as- • How to choose the assets? • How to rebalance the portfolio? • When to rebalance the portfolio? • What are rebalancing portfolio tax implications? If you want answers to such questions, then watch this episode. In this episode of InvestorsHangout, our expert will explain asset allocation and portfolio rebalancing and discuss a few portfolio rebalancing strategies. What is the importance of asset allocation? How often should you rebalance your portfolio? Join us in Investors' Hangout session wherein we will answer all these questions and discuss an easy way to maintain the right asset allocation with periodic rebalancing.