How often should I rebalance my portfolio?

How often should we rebalance our portfolio? Is there any particular time to do it? - Binu Krishnan That is a very important question but unfortunately, there isn't an easy answer. First, you need to decide the asset allocation, then only you can rebalance. Assuming that you have decided to do the asset allocation of 50:50 between equity and debt, I would say that in normal circumstances, when equity is growing by 10-12 per cent and fixed income is giving you 7-8 per cent, an annual rebalancing is good enough. But at the same time, follow the rule that anytime your asset allocation goes out of whack i.e. gets completely unusual, maybe a 10 per cent movement of the allocation, it should prompt you

This article was originally published on June 30, 2020.