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Should I really rebalance my portfolio each year – Will it not disturb Power of Compounding ?

hi to all at JI forum. My question is regarding frequency of rebalancing between debt & equity. If I have a long term outlook, say 20-25 yrs, does it make sense to rebalance annually? For such long period equity (through MF sips) will in all probability outperform debt. So by rebalancing every year, am I not interrupting the power of compounding? Will it not be better to rebalance as I approach nearer to my goal?

Any inputs will be appreciated.

Thanks,

Kuntal

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