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We all want our portfolios to grow. But very few of us think about what happens after they do. Markets rise, equity allocation balloons and suddenly, your portfolio doesn't look like what you originally planned. One subscriber put it well: "Redeeming from equity and investing in another asset class means paying 12.5 per cent tax. Isn't that a loss?" Fair point. Nobody likes paying tax. It feels like you're giving up part of your profit — especially when you're just trying to manage your portfolio better. But here's the reality: Not rebalancing can cost you more than the tax ever will. A pinch of tax is far less painful than a portfolio overloaded with risk. Over time, your asset allocation naturally drifts: Equity rallies? Great — but now you're sitting on more risk than you signed up for. Debt underperforms? Suddenly, it's a much smaller slice of your pie. That's where rebala
This article was originally published on May 27, 2025.
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