When we doing the rebalance meana chance of getting tax also short term or long terms tax after realising profits ,is this will affect the returns which put for long term
I am an user of ET money genuies Request you to expalin mainly taxes as i see monthly rebalancing in this genuis porfolio in stocks are we giving enough time as every month in rebalancing if that stock goes 9-10% down its selling and buying one more . Then how are you doing analysis for portfolio and what percentage we buy or sell stocks in every month rebalance ?????
Had the same thought, maybe rather than selling equity, it may be better to manage the SIP according to the market conditions, or sell upto 1L profit to not have to pay tax
So it boils down to risk-adjusted returns instead of just pure returns. I guess there are quite a few MF schemes that will have better risk adj returns than NIFTY 50 TRI and asset-allocated portfolio as discussed here. It'll be great if you can discuss specific hybrid MF schemes that already are doing this. Its better than reinventing the wheel. These schemes will have the added advantage of not just asset allocation into debt but also diversifying the equity part into large, mid n small caps instead of just restricting to nifty 50 stocks. And ofcourse no need to track markets for manual rebalancing or thinking about tax implications related to rebalancing
Hello, hybrid funds do provide automatic asset allocation and rebalancing. You can very well consider them if that's your requirement. Those who want control over their asset allocation can invest separately in equity and debt funds. The goal of this video is to bring home the point that asset allocation is useful even for long-term investors. But we have also noted your suggestion regarding a discussion on hybrid funds and will share it with our content team.
But you need to divide your money into short term and long term goals. The money that you don't need for 7 years can go into full equity fund. While till 3-4 we can use debt or hybrid fund. Personal I choose only debt and equity, no hybrid. Hybrid also takes more expense ratio.
@@ramyasri6093 Question is if we should include the PF in debt portfolio calculation. Rebalancing can be done with additional debt funds or in equity itself depending on the proportion.
What about taxes on debt part and rebalancing? Most people investing this much will have to pay taxes as per slab which can be as high as 30 %. Mathematics can easily fool you. Why would I invest and compare with Nifty 50? Include a realistic mix of mid and small cap as well. Actual returns of any active fund such as multi cap are much higher than Nifty 50 index.
While you have a point about using a realistic mix of mid n small caps and tax implications on rebalancing, would request to avoid harsh words. This is one of the few channels on YT where users can have a civilized discussion on important topics. Thanks.
Hello, if you rebalance your portfolio by selling off some of the units, there can be a tax incident. One way to avoid it is to use the incremental investments to rebalance your portfolio. In that case, your selling would be contained. Also, in our view, the long-term benefits of asset allocation and rebalancing go beyond their cost. Nifty 50 has been taken as it's the market bellwether and a frequently used criterion for analysis. Even if you used an active fund, the takeaway would remain unchanged as the same fund would be used on both sides: pure equity portfolio and asset-allocation portfolio.
@@ETMONEY I would not make the assumption that if nifty 50 TRI is replaced by an active fund on both sides, the asset allocation side would still give better risk adj returns coz there are quite a few schemes out there with very good risk adj returns esp in small cap n flexi cap space. Rebalancing these portfolios with debt could result in substantial compromise on returns for lower volatility. Hence it's more realistic to do this same analysis using a top active fund (based on risk adj rolling returns) AND considering tax implications related to rebalancing. See what the 7-yr rolling returns and their std deviation are. (To evaluate risk, just looking at drawdowns in extreme situations isn't enough - there are situations when debt outperforms even without a black swan even in equities. Std deviation of 7-yr rolling returns would take care of all this).
Hello, we understand that you prefer Hindi to English. We have a Hindi RU-vid channel as well where we post many of the videos on this channel post translation. You can visit it at www.youtube.com/@etmoneyhindi/videos
Only word ringing in my mind while watching this video was balanced advantage funds and then chill let fund manager decide....and let me focus on work and chill.... 😀
Hello, balanced advantage funds provide dynamic asset allocation based on the fund manager's view of the market conditions. You can very well consider them if they fit your purpose.
Balanced advantage funds are also pure equity funds as a product, i wont not consider them as my debt portion, and would rebalance even with balanced advantage.
Sorry, but you did not consider the transaction costs and taxes on rebalancing each year. Also, please consider a case of step up. Sip, as that is relevant for 90% of salaried mf investors. Make an updated video with these factors considered.
Hello, unfortunately, we can't make specific fund recommendations. However, you can use the Fund Report Card and the other tools on the ET Money app to find a good multi-cap fund for yourself.
Hello, this is an asset allocation of 66% equity and 33% debt. The problem with having the PPF as your debt instrument is that you can't readily rebalance your portfolio. Still, you can use incremental flows to maintain this asset allocation up to a point.
Hello, there are mutual funds that invest according to the principles of Shariah, such as Tata Ethical Fund, Taurus Ethical Fund and Nippon India ETF Nifty 50 Shariah BeES. You can explore them if they suit your requirements. ET Money allows your to invest in mutual funds without paying any commission.
