Rebalancing protects risk profile, but frequent churn can hurt returns. Use threshold-based rules to stay efficient.
Portfolio drift is natural when markets move, but unmanaged drift can expose you to unintended risk.
Instead of calendar-only rebalancing, combine annual review with tolerance bands. For example, rebalance when equity allocation deviates by more than a fixed threshold from target.
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This approach limits unnecessary transactions while keeping risk aligned with goals.
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Book an introductory call with our Certified Financial Planner to explore how we can help you achieve your financial goals.
About the author
Arjun Mehta