Comments on: How to do PORTFOLIO REBALANCING

By: Manish Chauhan

Manish Chauhan — Wed, 25 Jan 2012 14:08:50 +0000

Dheeraj

Pension plans are not that great in India http://www.jagoinvestor.com/2011/10/pension-plans-drawbacks.html

By: Dheeraj

Dheeraj — Wed, 25 Jan 2012 12:53:18 +0000

Hi Manish,
It was very good article.
I have invested in ULIP Kotak Second innings , Pension Floor II .
How it is and how to manage it.
Could you please explain in more details

By: Manish Chauhan

Manish Chauhan — Mon, 25 Jul 2011 17:08:27 +0000

Arohi

Thanks

Manish

By: Arohi

Arohi — Mon, 25 Jul 2011 11:22:51 +0000

Hiii friends ….

to understand diversification clearly or to understand balancing understand the principle “don’t put all your eggs into one bascket”

it would be clear…

and again good job manish thanks for making concepts more clear…

By: pasula

pasula — Mon, 07 Mar 2011 14:45:13 +0000

Ha manish, thanks for the prompt reply.

By: Manish Chauhan

Manish Chauhan — Tue, 01 Mar 2011 19:21:38 +0000

1. Equity here means anythign which has equity component , it can be equity mutual funds , ETF , index funds or pure equity .

2. You can sell one thing and buy other . If you have ULIP , you can do a “switch”

3. There can be exit load , but more that you have to be looking at short term tax .

Manish

By: pasula

pasula — Tue, 01 Mar 2011 19:04:23 +0000

Hi Manish, I have read this article 3 times, but am unable to understand to understand these things. 1. Equity here means a ppf account or an debt oriented mutual fund. 2. how should i shift the profits from equities to debt. 3. will there be any charges when i shift profits from equity mutual fund, to balance the portfolio, and if so how much would it be for each transaction

By: Manish Chauhan

Manish Chauhan — Sun, 09 Jan 2011 07:09:51 +0000

Ashish

You should not do rebalancing any early than 1 yrs, I would say do it in 2-2.5 yrs , as rebalancing means buy and sell and it might involve taxation issues from debt side atleast .
If you want to do it earliar than you should buy a ULIP .

Manish

By: Ashish

Ashish — Sun, 09 Jan 2011 06:08:51 +0000

Hi Manish,
Some questions around implementation of rebalancing.
1) What debt instruments we should consider to rotate money between debt and equity. Some option come to my mind
– FD has a lock-in period with intereste rate you mentioned
– Savings a/c, but it wouldn’t attract the interest rate of a normal debt instrument
– STP with another debt mutual fund – but debt mutual fund doesn’t attract interest rate of 8% or so (BTW I might be wrong here)
2) How frequently we should do rebalancing? I know you said 6 months or 1 Year. Should it be done more frequently ….

Thanks for your great work in educating novice investors like me
Ashish