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

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. आपली वाणी आणि वर्तन शुद्ध ठेवा. सत्य हेच मूल्यव...
Post a Comment
Read more

What is Investment and Why It Matters

What is Investment and Why It Matters (Especially for You) 👋 Introduction: Why This Matters for Everyone Imagine you have ₹10,000 today. You can do two things: Keep it in a box — it stays the same (or loses value) Put it to work — it grows (slowly or fast, depending on where) This is investment — turning your money into a tool that builds your future. Whether you're 25 or 65, investing is not about greed, it's about growth . It's about freedom , security , and peace of mind . 💡 What is Investment (In Simple Words) Investment means putting your money into something (like stocks, gold, mutual funds, real estate, etc.) with the expectation that it will grow over time. You're letting your money work for you — even while you sleep. 🧠 A Simple Analogy: Think of money as a seed. If you eat it now (spend everything), it's gone. If you plant it (invest), it may grow into a tree that gives fruits (returns) every season. 🔍 Investment vs Spending...
Post a Comment
Read more