Request your guidance on below queries on re-balancing portfolio topic :
- What frequency re-balance should be done . I have just started my portfolio 6 months back. This is the main query should i do it annual / half yearly.
- How to re-balance MF portfolio. Any specific post / steps will be useful for learning purpose.
- Is it compulsory to do every year. Because one of the adviser suggested me to keep first 5 years of investment with out any re-balance , otherwise it will affect the compounding of Equity.
- Any threshold to be set for re-balancing trigger. Say for instance +5% from allocated Equity part of 70:30.
- Already EPF is part of my Debt part of portfolio. Should i need PPF or Debt funds along with it.
Basically i need more information on this re-balancing, Lack of knowledge makes to choose any online portal like Kuvera to get the help for re-balance.
- Wait for a year or two, then start to rebalance.
- I will write on this soon.
- Initially for 2-3 years not required. Later on once in a year is a must.
- There is no such threshold.
- Not required.
Thanks Basu, I will wait for your new post on Re-balancing portfolio. I have query regarding Growth Vs Value funds in a portfolio, In general , do we need to mix growth and value funds for optimal portfolio construction.
If we keep only Value funds in a portfolio , do you see any consequences on this approach.
Surely I will write. Regarding Growth or Value, there is no such specific defined funds. You have to choose based on the underlying stocks.
I think it is tedious task in looking at stocks. Better stick to long consistent performance funds rather than to look growth or value. This is my understanding from your response.