If we assume that the equity portfolio has matched the rise in the Nifty since October 2005 and that the debt portion has earned 8 per cent, the 'hold forever' investor has earned a lower return than the asset allocator who rebalances his portfolio once a year.
If you have a sizeable amount invested in the market and the surge in equities has drastically changed your asset allocation, it may be time to rebalance.
When and how often should fund investors rebalance their portfolios?
On the other hand, the opposition believes that the rebalance
offers nothing new relative to the previous rebalances
since VMRO-DPMNE took office.
The investor rebalances his portfolio as soon as the ratio "exposure/cushion" reaches a lower or an upper bound.
In previous section, the investor is assumed to continuously rebalance his portfolio.
In conservative, buy-and-hold investing circles, asset allocation (putting investment funds into various securities according to the risk tolerance of the investor) only works long-term when the investor rebalances his portfolio from time to time to account for fluctuations in the markets.
The problem is, most people don't bother to rebalance.
Automatic rebalancing allows a retirement or benefit plan participant to schedule account rebalances every three, six or 12 months.
What sets Newport's version of this feature apart is that it allows participants to rebalance across multiple accounts," explained Eric Brickman, Vice President of Strategic Initiatives for Newport.
Rebalance is a new concept in beauty and health care.
Unfortunately, Rebalance left me with the latter impression.