Portfolio Rebalancing Calculator India 2025
Optimize Your Asset Allocation
Current total value of your investment portfolio
45.0%
25.0%
20.0%
10.0%
Rebalance Required
₹1,00,000
Est. Transaction Cost
₹500
Large Cap Equity
45.0% → 40.0%
No Action Required
Mid/Small Cap Equity
25.0% → 30.0%
No Action Required
Debt/Bonds
20.0% → 20.0%
No Action Required
Gold/Commodities
10.0% → 10.0%
No Action Required
Rebalancing Tips
- • Consider tax implications before rebalancing in taxable accounts
- • Use new contributions to rebalance instead of selling
- • Review and rebalance quarterly or semi-annually
- • Don't over-rebalance - minor deviations are normal
Current Allocation
Target Allocation
Current Allocation
Target Allocation
Portfolio Value
₹10,00,000
Rebalance Amount
₹1,00,000
Diversification
4 Assets
Portfolio Health
Excellent
Assets Out of Balance
2 of 4
Avg Deviation
2.5%
Diversification Score
80/100
| Asset Class | Current Value | Current % | Target % | Target Value | Deviation | Action Required |
|---|---|---|---|---|---|---|
| Large Cap Equity | ₹4,50,000 | 4500.0% | 4000.0% | ₹4,00,000 | 500.0% | SELL ₹50,000 |
| Mid/Small Cap Equity | ₹2,50,000 | 2500.0% | 3000.0% | ₹3,00,000 | +500.0% | BUY ₹50,000 |
| Debt/Bonds | ₹2,00,000 | 2000.0% | 2000.0% | ₹2,00,000 | +0.0% | NO ACTION |
| Gold/Commodities | ₹1,00,000 | 1000.0% | 1000.0% | ₹1,00,000 | +0.0% | NO ACTION |
| TOTAL | ₹10,00,000 | 100.00% | 100.00% | ₹10,00,000 | - | 2 ACTIONS |
Assets to Buy
Assets to Sell
📝 Implementation Tips:
- • Execute all trades on the same day to maintain target allocation
- • Consider using any fresh investments to rebalance before selling existing holdings
- • Be mindful of exit loads and tax implications for debt funds
- • Review your portfolio quarterly and rebalance when deviations exceed threshold
Portfolio Rebalancing Best Practices
Expert strategies to optimize your asset allocation and maximize long-term returns
Set Clear Allocation Targets
Define your target asset allocation based on age, risk tolerance, and financial goals. A common rule is (100 - age)% in equity.
Review Regularly, Rebalance Thoughtfully
Review your portfolio quarterly but only rebalance when deviation exceeds 5-10%. Avoid over-rebalancing which increases costs.
Use Fresh Money First
Before selling assets, try to rebalance by directing new investments to underweight asset classes. This saves on taxes and costs.
Consider Tax Implications
Be mindful of short-term vs long-term capital gains tax. Consider tax-loss harvesting and holding periods before rebalancing.
Why Portfolio Rebalancing Matters
Benefits of Regular Rebalancing
- Risk Control: Maintains your desired risk level over time
- Disciplined Investing: Forces you to buy low and sell high
- Goal Alignment: Keeps investments aligned with objectives
- Volatility Reduction: Smoothens portfolio performance
When to Avoid Frequent Rebalancing
- High Costs: When transaction costs exceed benefits
- Tax Implications: Triggering unnecessary capital gains
- Small Deviations: Minor allocation differences (< 5%)
- Market Timing: Trying to time market movements
Everything you need to know about portfolio rebalancing, asset allocation, and investment optimization in India.
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