Rebalance my portfolio and redeem my mutual funds !

POSTED BY kb2inv ON January 13, 2014 12:21 pm COMMENTS (9)

Hi Experts,

I am trying to re-balance my mutual fund portfolio but I am not sure if I need to redeem the mutual fund units all at once and re-invest it in a new fund or do it systematically every month buy redeeming only a portion of it.

I currently have investments in HDFC Top 200, DSPBR Top 100, Reliance Growth, Kotak 50 which are delivering below average returns. I would like to move it to UTI opportunities, BSL Frontline equity, SBI magnum global.

Please provide me with your suggestions.

Thanks!!

9 replies on this article “Rebalance my portfolio and redeem my mutual funds !”

  1. ashalanshu says:
    January 15, 2014 at 3:04 am

    Dear Kb, if your fund’s performance is better than it’s benchmark in each Calender year for last 7-8-9-10 years, you need not to worry.

    Thanks

    Ashal

    Reply
  2. ashalanshu says:
    January 14, 2014 at 12:28 pm

    Dear Kb, the question remains active, what ‘ll you do if the new chosen funds go in the same way? Please check the performance of your funds for last 9-10 calender years against it’s benchmark. Is it really underperforming?

    thanks

    Ashal

    Reply
    1. kb2inv says:
      January 14, 2014 at 8:51 pm

      So i guess the suggestion here is to continue in these funds rather than rebalance?

      Reply
  3. ashalanshu says:
    January 14, 2014 at 7:23 am

    Dear Kb, why only 3Y? Why not 5Y or 7Y or 10Y?

    Thanks

    Ashal

    Reply
    1. kb2inv says:
      January 14, 2014 at 7:36 am

      Because 3 Y is the time frame where I had invested in these funds.

      Reply
  4. ashalanshu says:
    January 14, 2014 at 2:03 am

    dear KB, how are you measuring the underperformance of your funds?

    Thanks

    Ashal

    Reply
    1. kb2inv says:
      January 14, 2014 at 7:15 am

      I am comparing the returns from these funds to its peers in same category over last 3 years.

      Reply
  5. ashalanshu says:
    January 13, 2014 at 10:15 pm

    Dear Kb, what ‘ll you do if in future the new funds chosen by you start underperforming from your entry date?

    thanks

    Ashal

    Reply
    1. kb2inv says:
      January 13, 2014 at 11:57 pm

      So Ashalanshu, what do you think is the right approach to re-balance portfolio? This is precisely why I raised this question.

      Reply

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