Skip to main content

Rebalancing Portfolio – Practical Demo

Rebalancing Your Investment Portfolio

📊 Rebalancing Your Portfolio

Maintain your target asset allocation by reviewing your portfolio annually.

🔁 What is Rebalancing?

Rebalancing means adjusting your investments to maintain your original asset allocation—like 60% equity and 40% debt—especially after market movements skew the ratios.

📅 Annual Check-Up Method (Example)

Original plan: 60% Equity, 40% Debt
Let’s assume ₹1,00,000 invested in Jan 2024

Asset Initial (₹) % Allocation Value After 1 Year (₹) New % Allocation Action Needed
Equity 60,000 60% 72,000 66% Sell ₹6,000
Debt 40,000 40% 42,000 34% Buy ₹6,000
Note: Equity overperformed, so sell excess and move into debt to bring portfolio back to 60:40.

✅ Steps to Rebalance Your Portfolio

  1. Check current values of all investments annually
  2. Calculate current % allocation of each asset class
  3. Compare with your target allocation (e.g., 60:40)
  4. Sell/buy units to bring it back to the target
💡 Pro Tip: Rebalancing helps you "buy low, sell high" in a disciplined way!
Labels:

Comments

Post a Comment

Popular posts from this blog

Step-by-Step Guide to File ITR-1 Online (Sahaj Form)

Step-by-Step ITR-1 Filing Guide for Indians 📘 Step-by-Step Guide to File ITR-1 (Sahaj) in India This guide is perfect for salaried individuals like Neha — a software engineer earning ₹10L, owning one flat, and earning FD interest. Who Can File ITR-1? 👉 Resident Indians with total income ≤ ₹50L from: - Salary or Pension - One House Property (not rented) - Interest from Savings/FDs 🧾 Required Documents Document Details Form 16 Issued by employer — salary and TDS details Salary Slips Monthly salary record for cross-checking Bank Statements FD/Savings interest income details PAN & Aadhaar Mandatory for login and e-verification Form 26AS / AIS To verify TDS and reported income Investment Proofs ...
Post a Comment
Read more

Taxation in Investments (India)

Taxation in Investments (India) 💸 Taxation in Investments (India) 📊 LTCG, STCG & Dividend Tax – At a Glance Asset Type Holding Period Short-Term Capital Gain (STCG) Long-Term Capital Gain (LTCG) Dividend Tax Equity Shares / Equity Mutual Funds > 12 months = LTCG 15% flat 10% above ₹1 lakh (no indexation) Taxable as per income slab Debt Mutual Funds > 36 months = LTCG As per income tax slab Removed from FY24-25 — Now taxed as per slab Taxable as per income slab Gold (Physical, ETFs, SGBs) > 36 months = LTCG As per income tax slab 20% with indexation Not applicable Note: SGB interest (2.5% p.a.) is taxable; redemption after 8 years is LTCG exempt. 💡 Popular Tax-Saving Investment Optio...
Post a Comment
Read more

बुद्ध आणि राहुल यांच्यातील संवाद - एक जीवनाचा धडा

बुद्ध आणि राहुल यांच्यातील संवाद - एक जीवनाचा धडा बुद्ध: “ताटलीतलं पाणी पिण्यास योग्य आहे का?” राहुल: “नाही, अजिबात नाही!” बुद्ध: “मग तू सुद्धा त्या पाण्यासारखाच आहेस — मूळतः शुद्ध, पण सतत खोटं बोलल्यामुळे तू दूषित होतोस. आणि असं झालं की लोक तुला कधीच मूल्य देणार नाहीत.” 🌱 या संवादाचा अर्थ: या छोट्याशा संवादामध्ये बुद्ध खूप मोठा जीवनधडा देतात. ताटलीतलं पाणी हे "शुद्ध असलं तरी वापरामुळे अस्वच्छ" झालंय. त्याचप्रमाणे, राहुलदेखील मूलतः चांगला आहे, पण त्याची खोटं बोलण्याची सवय त्याचं सौंदर्य व विश्वासार्हता कमी करत आहे. 🧠 आत्मपरीक्षणासाठी संदेश: माणूस मुळात चांगला असतो, पण वागणुकीमुळे दूषित होतो. खोटं बोलणं आपल्या छबीवर व समाजातील स्थानावर वाईट परिणाम करतं. विश्वास गमावणं सोपं आहे, पण पुन्हा मिळवणं फार कठीण. बुद्धाचे ‘सम्यक वाचा’ म्हणजेच सत्य बोलणे हे अष्टांगिक मार्गाचं एक महत्त्वाचं अंग आहे. 💡 निष्कर्ष: आपण सुद्धा ताटलीतल्या पाण्यासारखे होऊ नये...
Post a Comment
Read more