Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
Always knew Importance of asset allocation but the example that showed how only 2 years can make difference to CGAR of long 15 year period was an eye opener. Thank you and pls keep up the great work !!
Thank you Kamal Thakur. Yes .. we were always wondering .. why is this happening and when we peeled the layers, we noticed this huge difference of 1.3% annual returns over 15 years (which is a lot) was because of 2008 and 2009. Yup, an eye opener for us too.
I have heard and have been advised by many wise investors about portfolio balancing and rebalancing which is so crucial in smart Asset Allocation. I didn't have the knowledge of how to go about it. This video is so beautifully timed!! It was much needed at this hour! Thank you for doing this! It's clear, precise and well explained by Shankar sir!! 🙏👍
Thank you Ramya Varma. We learn quite a bit while researching and scripting these videos .. very happy that we get an opportunity to share it with the world through these videos.
Good demonstration. While I agree, rebalancing is good, but just for the record, If 100 was invested in equity with zero in debt, it would have resulted in 465.8 which is higher than rebalancing. There are some famous investment theories which suggest in the long run, equity investment in decent and relatively safer index products, will beat the lower risk debt rebalanced portfolios. Also in the above example, 462 is without taking into consideration of rebalancing costs. with that cost, I think it would be in the range of 400-430.
@@mandarw100786 You can select any decent Nifty or Sensex index funds for a 5+ or 10 year horizon point of view. Make a sip. If you want to further diversify, find a way to invest in S&P 500 index funds to get on the US growth ladder. Buffett advices the same. Frankly, you don't have to beat any market. As long as you are in sync with market over long run, you earn much more than you would imagine by the magic of compounding. Also by its nature index funds bet on the best performing companies and are well diversified within the equity market.
That's right. But as you can see in this video the 60% allocation in equity (with rebalancing) has given close to 100% equity returns in the long run. Also, this is an example of risk adjusted returns. Not to mention peace of mind all those years with allocation in debt. People do behave erratically during market crash or bear market (even if they had determined earlier that they will be rational in those times) which makes things worse. If you need some large amount of money which could be possible in a recession the money redeemed from debt instruments will help. The thing is we forget about a lot of complications that could occur in life and markets over the long term while making investment plans and that screws us up. The role of allocation in debt depending on person's situation can never be neglected.
@@msaw504 While I am not totally opposed to your thought process, but more and more I am convinced that 'risk adjusted return' definition is changing. Equity index based investment approach for me sounds like a better risk adjusted return as over 10-30 year horizon, markets will always be in upward direction. As long as all your money and savings is not in stock market and you have a balanced portflio of cash, equity, gold, real estate etc... you are already diversified and risk balanced enough. I would rather reduce my risk further by having additional FDs over debt funds which means taking NO money out of equity until it is absolutley the last resort. Let the compounding effect do the magic. Also, above calculation in the video, doesn't consider rebalncing costs. if you are true to risk adjusting on regular basis of equity vs debt, your rebalancing cost will be substantial over 10-30 years.
While zero debt portfolio would have given the best returns as of today's date, One really does not know when he needs money in long term. If the year you need money turns out to be a 2008 or 2020, his or her portfolio return will be much lower. Having some portion in debt is like having a safety net when market falls (which comes with a cost) and if one does asset allocation, he can actually buy low and sell high..
Good Professional advice…one has to worry about tax , correct update on the assets that one wants to shift/choose, exit load where applicable. Good job done ✅.
Very relevant topic. Thank you. Can you please consider the cost and capital gain tax implications while simulating the performance of the rebalanced vs non rebalanced portfolios?
Thanks. The cost (exit load) and the taxation bit is not as straightforward as one feels .. and parts of that were discussed in the video. Here are some of the scenarios, a seasoned investor will look at to reduce tax implications: 1. One can use threshold and time triggers to reduce the need to rebalance or protracted selling 2. Similarly, new funds can be used to rebalance thereby reducing selling opportunities esp. in debt (where STCG is higher) 3. Use thresholds to position equity sales with LTCG implication over STCG which saves 33% taxes on equities i.e. 10% divided by 15% 4. Use tax harvesting to reduce taxes 5. Use the 1 lakh exemption offered under LTCG
I listen to these videos while working out. A weird choice of music but I believe this is the best use of my time. This just goes to show how easy it is to understand them. Keep up the great work!
Great video. I have seen so many videos on rebalancing but nobody explained it by using data. Simply amazing. I do have a question. Do you suggest to sell some part of my equity at the end of every financial year (March) to invest the same amount in PPF(April)? It will save my capital gains tax upto 1 lakh and I can use that money for deduction under 80c?
Thank you, Saurabh Singh. We don't know specifics of your risk, financial situation etc. so we won't comment on this strategy. However, we suggest any actions taken on one's money should be accompanied with an alignment to goals. In other words, please do decide what will be accomplished by selling equities and moving some money into a PPF? Do remember, PPF account have a lock-in period. Rebalancing is certainly a more fluid concept.
Once we reach near goal(2-3 year before), it is advisable to move funds from equity to debt to protect corpus. if we withdraw debt amount within 3 year of investment then short term gain will be calculated and 30% tax on gain. And we cant take indexation and long term gain advantage in this case. Any better way to deal with this?
Thankyou etmoney for so detailed explanation on rebalancing. 🎉 Request you to let us know what kind of debt funds we can choose while rebalancing . There are many kind of debt funds . Choosing wrong fund will clutter the purpose of rebalancing ? Or any debt fund will work?
Most welcome. Please watch our 2-part series on debt funds Part 1 : ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-0I68yyBwcno.html Part 2 : ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-1BTke9iLuYg.html
Thank you, again, for yet another calculation-based real-life solution. As always, I will use this calculation for my portfolio. However, in context of this video, have you considered other debt or debt-similar type of investment into the calculation? In another video you noted that EPF, including PPF, LIC, Gold, etc. should be considered for asset allocation. So which bucket you would put this investment into? FYI, with the help of the report card. Thank you for teaching us.
Thank you, Md. Shahid Latif. In this video, debt and equity have been considered under the broader category. We could have added more assets like gold, short term debt, long term debt, large cap equity, international equity etc. but that would have made the video very complex and most would have missed out on the core objective of the video i.e. 1. what is rebalancing, 2. the situation where rebalancing really helps, 3. how to do rebalancing and 4. what considerations need to be kept in mind (e.g. tax)
Thank you very much for the guidance. This is one of the best youtube channel regarding investing. One help needed. As you have divided equity in Largecap Midcap Smallcap , same way help for Debt Portion. If video is already uploaded for debt , kindly share the link.
Great to hear! Important to note that the equity splitting was a sample portfolio and not any kind of recommendation. The idea was to explain with a real example how movement in different market caps changes the portfolio. Please do not construe it as a suggestion.
Thanks. Yes ofcourse .. we're playing a test match .. need openers, the Wall, pacers, spinners etc. (asset allocation) ... and need to defend, attack, waste time depending on whether it shines or rains (rebalancing).
Good video overall, do you have an excel which can give us which mf to rebalance in equity and debt. But I liked the idea of buying weeker assets when we get bonus and rebalancing portfolio, instead of selling and buying.
@Shankarnath- great presentation brother as usual, wonder how do you make all complicated content look so simple, your voice & delivery makes all the difference, there's a teacher part too hidden in you Just a suggestion: AUMs are different from retail investors So, going by time trigger for annual rebalancing, in case While rebalancing, instead of selling & buying & rebalancing the equity debt ratio, it invites capital gains & exit load too, "why don't just rebalancing the investment the coming year to make the ratio again to 60:40 Or doubling investments to the tool which had a drop the last year? Can it be worthwhile to think of? Thank you & regards
Can you make 1 video on rebalances between stocks eg. you are holding 10 stocks in your portfolio and 2 of them Quadruples, should you sell and rebalance as per your strategy or let the winners run.
Our pleasure. Glad you liked the content. A lot of effort went in to examine a lot of data and to sieve the more relevant parts of it. These funds aren't as standard as some other schemes, so it was quite a challenge
Quite good video on rebalancing of portfolio. Typically we see that equities are yielding higher returns (more in recent times) than debt so we think we should put more money in equities but long run it may not be the case. On rebalancing aspect I have following question: Lets assume currently I have total asset of 20 Lakhs as follows: 8 lakhs in EPF, 4 lakhs in NPS (NPS spread as 70% E, 15% C, 15% G), 1 lakh in FD and remaining 7 lakhs in mutual funds (MF spread as: Equity mutual funds of 4 lakhs, Liquid funds of 2.5 lakhs and 50 thousands in arbitrage funds). My understanding is that I need to consider complete 20 lakhs for rebalancing and not just 7 lakhs of MF alone. Is my understanding correct? If so under what category does EPF, FD , Arbitrage funds fall? Are they debt or equity?
Thank you. The splitting is entirely upto you. We have seen investors who rebalance some goals (typically the MF and stock portfolio i.e. more liquid portfolio) and don't do much with the other assets like EPF, PPF etc.
I will share my portdolio and how I did rebalancing using the learnings from this video. Do spare few minutes to see it. Thanks in advance. Yoy are the master of personal finance in India. Neat, clear, unbiased and clear articulation.
Most welcome. Typically, rebalancing is not done for specific funds, it is done for the entire portfolio. It's a sequel to the asset allocation process (we have a good video on that on our channel, worth watching)
Over the long term, 100% equities have performed better in most markets. Rebalancing is not a performance-maximization strategy. At its core, it's also a risk management strategy.
If we keep on rebalancing it say after a year, then we would have to pay to taxes on equity sold and debt bought will have other charges . Similarly if debt grew and equity didn't then selling of debt would attract STCG if rebalancing is done every year.. wouldn't that dramatically reduce the returns from 462 rs?? Would love to see the number if tax was imposed on them
Yes, taxation is a part of the rebalancing process as mentioned in the video. The final corpus will be lower than 462. We didn't simulate it in our study else this video would get complex. But over time, investors who do rebalancing find it easier. For instance: 1. many rejig the equity side more than the debt side because the tax incidence is low (equity is 15/10% v debt 30%) 2. Plus they also use the 1 lakh exemption rule on LTCG to their advantage 3. Also use tax harvesting to lower the incidence of taxes
Great video. I have some questions here. * Do you consider house in which you sre stayung as a debt asset. Because thats a big money for those in metro cities. Same with car/ vehicle. * You have not mentioned gold. Most Indian households have gold in some or the other form. Have you considered this as separate asset class because no mention of same. * Hiw to assess money invested in multi asset or hybrid fund? Because allocation will keep changing
Most welcome. Some points for you to consider : 1. Balanced (hybrid equity) mutual funds have only equity and debt .. so there is an asset deficiency because many investors have other assets too like gold, real estate etc. (we have a video on multi-asset coming up; do watch that) 2. Also, hybrid equity funds are too tightly defined so rebalancing may not work in some cases. E.g. the aggressive hybrid fund needs to have 65% on equity.. which means if rebalancing requires to be brought down to 50%, this fund cannot do it as it doesnt fit the fund objectives
Do we need to rebalance the portfolio if investment is goal based? If yes then how will we do that? Suppose I've an SIP for a goal which is long term hence the investment is in equity and another SIP which is for medium term goal and hence a hybrid approach. Si after sometime when the allocated ratio disturbs, how should we rebalance our portfolio?
Yes, rebalancing is a process which will make your goal easier to attain with more stable results. The process of rebalancing has been explained in the video, is there a specific part which you'd like more clarification on?
But according the data you projected it would be best to have 100 percent of portfolio in equity, it beats the returns from 60 40 portfolio balanced annually, just that the portfolio would be more volatile
Absolutely. If you are ok for volatality. More in equity is better. But once you reach towards goals... May be wise to rebalance to minimize last minute shocks
Rebalancing is not a performance-maximization strategy. At its core, it's also a risk management strategy. The strategy aims to drive a balanced between returns-at-any-risk v/s low-risk-irrespective-of-return approaches.
Thanks for informative video as always! I have just one question How one should rebalance portfolio if it has commodity MF like Gold. What would be the formula?
Thank you. Rebalancing is typically done across multiple asset classes. Since the video was to give viewers a conceptual understanding, we kept it to equity and debt. The process is exactly the way we described it in the video
Hi, Thank you for the very insightful and informative video. Recently in my query, I had asked ET money how often the rebalancing will be done by GENIUS, I'm told it could be monthly or whenever fresh money is deployed. It's not just the tax part that one should be worried about but also entry and exit loads on such frequent rebalancing that will sure nibble into the profits. Appreciate if you can provide your view.
Dear Sridhar: We have answered this question in our dedicated Genius videos. Pls look out for the comments section where this and other questions have been asked and answered. I also hope you have examined the difference in returns between Genius portfolios and the benchmark - that's the key to receiving the correct answer. It's all in the math.
After taking any genius plan and selectiing any etfs will this rebalancing done by the etf bodies by themselves or we have to do. Do they charge anything for every rebalancing or changing the stocks ratios.
Hello ET Money, Thank you for this insightful information! I also followed your debt MF and portfolio rebalancing series. I believe selecting a debt MF is more tricky than selecting an equity MF. It would be great if you can also give us some clarity that what kind of debt fund one should consider for portfolio rebalancing ? For example, if I have three Multicap funds from different AMCs, does it make sense to have 3 debt funds from same AMCs for easy switch and rebalancing ? Also, after some research, I shortlisted below debt funds for rebalancing my portfolio, I understand that you educate people and don’t provide financial advice but what is your view on these for DIY investors ? ICICI Prudential Corporate Bond Fund ABSL Low duration Fund Axis Gilt Fund or ICICI Constant Maturity Gilt Fund
Dear subodhuniyal - we have a good video on debt funds that can help you with this question. Afterall, the debt fund one chooses has to align with one's risk/return framework. Please check that out as a guide. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-0I68yyBwcno.html Thanks for your appreciation as always. Wonderful to see heartening comments from you, really lifts the team (it takes 4 man days of effort to create a 15-minute video .. phew!)
Thanks, glad you liked it. We have an excellent video on debt instruments. You should use those instruments that align with your risk appetite. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-0I68yyBwcno.html
Excellent explanation and examples! Loved them. 1 Question. Can re-balancing be done in form of altered investments in 1st 2 to 3 months of the next year? Meaning if the difference is say 10k, can the re-balancing be in the form of 10k invested more in debt in 1st couple of months? Reason being tax implications arising from selling each year. Thanks.
I am about simplification and as passive investment as possible and I also want to do SIP. That meant investing in Index Fund and one or 2 debt funds (and gold for hedging, but I will leave this part as you have done in your video). Now you ask me to do rebalancing on say yearly basis (which may not be optimal) and have shown that it can give higher return with perhaps lesser risk. My question is, then instead of me doing it, can't I defer this job of rebalancing with experts and invest in just 1 fund - Balanced Advantage Fund and be done with it? Pros I see - 1) Not my headache of rebalancing 2) Not my headache to figure out when to rebalance for optimal results. If I personally do it with various funds, I will still be charged ~0.3% in Fees (Direct Funds) and additional taxes, If I do it via balanced advantage it can be between 0.5% - 0.7% in Fees and no tax implications. Seems alright to me, is it? What would be cons of this strategy?
A rebalancing process helps investors keep on track with their asset allocationi.e. if 60:40 is your chosen allocation, rebalances ensures even if your allocation wavers to 65:35 or 67:33 .. by buying/selling your position will come back to 60:40. On the other hand, a hybrid fund like a balanced advantage fund has a completely different objective, which is to regulate the debt and equity portion in line with a model (say a PE model). So if stock markets are high, the BAF will take the equity to as low as 20% (even 0% for some schemes) and vice-versa. Notice what is happening in both cases - rebalancing ensures you remain on 60:40 while BAF changes your complete allocation. That's a big difference in objectives and must be kept in mind when comparing both approaches
@@ETMONEY Cool. Got that. So the aim of the BAF is to rebalance to take advantage of bear market and be vary of the bull market while the aim of manual reallocation process based on triggers is to generate risk adjusted returns in line with our assessment for portfolio creation (say 60/40).
A gradual rebalancing is better if you want to avoid capital gains tax. So in case equity is high, you just stop all your SIPs and then start new SIPs with more allocation in the debt fund and less allocation in the equity fund, and continue that till the required asset allocation is achieved on the portfolio.
Hello Shankar, I understand your suggestion here to rebalance once a year but then I am wondering WHY DOES ETMONEY REBALANCE GENIUS PORTFOLIOS EVERY MONTH? Please consider this as a feedback.
Sir as always great video. While I understood the concept crystal clear. But it needs lot of heart and conviction and usually works best just before bear market. But opposite if we do it before a strong bull Run. Also, in earlier years of investing, rebalancing from equity to debt may dent long term gains from equity. But as always you have data. So I may be wrong :-)
Thanks for this video. I don't invest in Debt. But I have investments like PPF, sukanya Samruddhi, Atal pension, bank FDs, gold and LIC policy which give me around 7% return. Can I consider them as my debt fund??? Please advise
Hi Team. I’m in my early 30’s and investing mainly towards my Retirement corpus which I plan to touch only after minimum 25 years. Since this is a long term goal can I go 100% equity and slowly move to debt in my last 5 years.
Sir Fantastic Video. But I request you to make one video on Taxation and Tips for saving Tax. And Importantly exact place where to mentioned gain while filing returns.
Dynamic Asset or balanced Advantage funds helps too in this case right to rebalance equities and debt based on market conditions giving optimal returns. Can’t we have a chunk of the above funds part of primary equity allocation to balance it out?
This is quite a surprising question and we think there is a bit of an over-think going on regarding the objectives of rebalancing. Here's why? A rebalancing process helps you keep on track i.e. if 60:40 is your chosen allocation, frequent rebalances ensures even if your allocation wavers to 65:35 or 67:33 .. by buying/selling your position will come back to 60:40. On the other hand, a balanced advantage fund has a completely different objective, which is to regulate the debt and equity portion in line with a model (say a PE model). So if stock markets are high, the BAF will take the equity to as low as 20% (even 0% for some schemes) and vice-versa. Notice what is happening in both cases - rebalancing ensures you remain on 60:40 while BAF changes your complete allocation. That's a big difference in objectives. Hope this helps.
During rebalancing don't we have to pay tax for the sell? To avoid a tax cut can I invest accordingly to keep it re-balanced. ---- okay you answer it at the end. Guess we need to be patient.
Very well explained. Sir I have index fund in my portfolio along with midcap, elss and flexicap and international MF. Do I need add large cap MF in portfolio? Or which is good strategy for long-term index fund or large cap MF? Please reply
Wonderful video explaining a crucial concept with data. However, is there a way I can see the same calculations with an additional layer of tax implications each year for equity and debt after accounting for the LTCG tax exemption limit of 1L each year.
Thank you very much! The taxation bit is not as straightforward as one feels .. and parts of that were discussed in the video. Some scenarios which has tax implications : 1. One can use threshold and time triggers to reduce the need to rebalance or protracted selling 2. Similarly, new funds can be used to rebalance thereby reducing selling opportunities esp. in debt (where STCG is higher) 3. Use thresholds to position equity sales with LTCG implication over STCG which saves 33% taxes on equities i.e. 10% divided by 15% 4. Use tax harvesting to reduce taxes 5. Use the 1 lakh exemption offered under LTCG
Very informative contents. If we wish to keep few allocation in debt mutual funds only along with equity then is it not a better idea to select few balanced advantage funds for very long term goals to avoid frequent rebalancing and selling or buying of new mutual funds and paying LTCG or STCG taxes?
Thank you. It's a good question and honestly, we think many viewers are over-thinking the objective of rebalancing (not sure why). A rebalancing process helps you keep on track i.e. if 60:40 is your chosen allocation, frequent rebalances ensures even if your allocation wavers to 65:35 or 67:33 .. by buying/selling your position will come back to 60:40. On the other hand, a balanced advantage fund has a completely different objective, which is to regulate the debt and equity portion in line with a model (say a PE model). So if stock markets are high, the BAF will take the equity to as low as 20% (even 0% for some schemes) and vice-versa. Notice what is happening in both cases - rebalancing ensures you remain on 60:40 while BAF changes your complete allocation. That's a big difference in objectives. Hope this helps.
Amazing presentation just like always. I do have a related question. How do we rebalance if we have flexi cap in the portfolio? They keep changing and investing in different capital sectors based on the market which is kind of good because a professional is handling that but also seems bad since it is messing up the original equity split that I went with. Oh and since this is just about equity split and no debt like in the video, maybe we can replace the flexi cap with a hybrid fund that invests in both debt and equity and the ratio is managed by the fund manager.
Thank you, Rishabh Dubey. 1. It doesn't matter which fund one has. Portfolio rebalancing is done at a point in time, say 26th March .. so one can take what is there in the portfolio on 26th March. Funds changes everyday, however one cannot rebalance everyday 2. Hybrid funds have a different objective so you might want to think about it again. A rebalancing process helps you keep on track i.e. if 60:40 is your chosen allocation, frequent rebalances ensures even if your allocation wavers to 65:35 or 67:33 .. by buying/selling your position will come back to 60:40. On the other hand, a hybrid fund like a balanced advantage fund has a completely different objective, which is to regulate the debt and equity portion in line with a model (say a PE model). So if stock markets are high, the BAF will take the equity to as low as 20% (even 0% for some schemes) and vice-versa. Notice what is happening in both cases - rebalancing ensures you remain on 60:40 while BAF changes your complete allocation. That's a big difference in objectives.
@@ETMONEY Thanks for the reply! I think I wasn't clear in my question. Watching your videos, I've become aware of the fact that BAF funds will allocate the assets according to their own model to make the most profit. My question was, how do we do the equity split rebalancing knowing that there's a flexi cap fund in the portfolio which will be changing their ratio at any given point which may mess up your desirable split. And in a similar way, how do we do a equity/debt rebalancing knowing that there's a BAF (hybrid) fund that will change the asset allocation which can, again, change our desired equity/debt ratio. I believe your recommendation was along the line that we shouldn't be worried about funds changing the ratio internally and still go for rebalancing once a year. If that is true for both the above cases, then I've got my answer. Thank you ETMONEY, really appreciated ☺️
@@rishabhdubey374 Well, inch-perfect accuracy when working with actively managed funds is not expected. However, we have seen that all fund managers have a certain style and they stick to it at most times. Hence, investors don't need to overthink the process that much An alternative is - one can use a combination of index funds. This way, you have higher control over the asset allocation and rebalancing process.
Hi. I think you mean the asset allocation ratio i.e. what proportion of your capital needs to be distributed across which assets? (hope you have watched our video on "Right Way To Do Asset Allocation"). 1. 60-40 is just an example. Most people use different ratios and it's recommended to do this allocation on a tactical level i.e. 1. apportion per market conditions and 2. use multiple asset classes incl. gold, property and international equities. 2. With re changes in asset allocation when one approaches retirement (or your goal), then a glide path is certainly recommended which reduces portfolio volatility. Ofcourse if the AA & rebalancing is done right, this should not lead to any demonstrable reduction in returns.
Sir, what are the best debt instruments for 40% of the investment. Is it advisable to hold 40% debt for long term investment like 10/15/20 years period. My current age is 27 years.
Please recheck if you are factoring other debt instruments like PPF, EPF and fixed deposits in your calculations. Most investors miss that With regards to which debt funds, please check out ET Money app's investment ideas for more details. Thanks
@ETMONEY: I've a goal for my child's higher education. Here are the details. 1. Time set for goal - 15 years 2. Target amount - 2CR. I've associated two assets for this goal 1. Sukanya Samriddi Yojana - Every year I contribute 1.5L and current corpus is around 4.8L 2. Canara Robeco Bluechip Equity (Large cap MF) - Started this year and plan is to contribute 1.5L this year. I've worked out the plan and in order to hit the target of 2CR, I should increment my MF contribution by 10% every year for the next 15 years. Since rebalance won't work for me to achieve this goal as time is less and target is high, also my MF exposure gets increased as I get older. What is best other way to achieve this considering rebalancing? Thanks
Nope it won't.... higher the equity portion , higher no need to do rebalancing.... compounding will work it's magic ...they have done in a way so that we get convinced nd they will get Brokerage nd exit laods
Muze apna shagird bana lo Shankar Sir.. at least aapki research team me internship hi dila do. Your content amazes me every time with the depth of knowledge and rationality..
Do watch our video on asset allocation (one of our favourites), it will give you some scenarios and techniques. And don't forget to watch the tips at the end of the video
FIRST VIEW ONLY I UNDERSTOOD THE C CONCEPT BY SEENING THE RESULTS OF THE DATA PRESENTED BUT DID NOT UNDERSTAND THE PROCESS . I THINK I HAVE TO VIEW 10 TIMES TO BE VERY CLEAR . I AM FULLY INVESTED IN EQUITY SO FAR . AND BALANCING BY SELLING / REDUCING THE LAGGARDS AND BUYING GROWTH STOCKS WITH THE AMOUNTS SOLD FROM LAGGARDS . AND BOOKING PROFITS OF GAINING STOCKS TO BUY NEW GROWTH STOCKS AT CORRECTION . I DONT KNOW IF IAM DOING IS CORRECT OR NOT . I AM POOR IN STOCK MATHS .
What should be the minimum investment value from where we should start rebalancing since starting it very early can be cumbersome and not useful as well.
