POSTED BY March 18, 2011 6:18 pm COMMENTS (7)ON
I have often heard that say, when one invests Rs. 10,000/- per month in pure equity funds and pure debt funds in the ratio 60: 40 (equity 60% and debt 40%) , portfolio rebalancing should be done atleast a year to maintain the ratio 60:40.
If the same person were to invest this Rs. 10,000/- p.m in a balanced fund that maintains the 60: 40 equity to debt ratio, then is portfolio rebalancing necessary? What are the factors to be considered and when should be book profits?