INDIA-VEHICLESM19

Portfolio Tracking and Rebalancing

Use a disciplined tracking and rebalancing process to keep your Indian portfolio aligned to goals and risk tolerance.

Learning Goals

  • Track portfolio performance against targets.
  • Understand rebalancing triggers and tax-aware implementation.
  • Use automated and manual tools for Indian investing.

Core Concepts

Target Allocation
Beginner

Define a clear percentage for equities, bonds, and alternatives based on goals and risk profile.

Rebalancing Thresholds
Beginner

Rebalance when an asset class deviates by 5-10% from target, or once per year, whichever comes first.

Tax-Aware Rebalancing
Beginner

Prefer buying underweight assets and using new cash flows first to reduce the need for selling taxed holdings.

Indian Market Context

Tools like Zerodha Coin, Groww, and StashAway allow Indian investors to track allocations across funds, stocks, and ETFs.

Hands-On Calculators

Future Value Calculator
Future Value₹3,10,585

Gain: ₹2,10,585

Behavioral Insight

🧠 INACTION BIAS: Investors know they should rebalance, but procrastinate and let portfolios drift dangerously.

From History

Portfolio Tracking and Rebalancing

Portfolios that rebalanced in 2008-2009 were smaller at the bottom but recovered with stronger risk-adjusted returns.

Take the Quiz

Module Quiz
What is a common rebalancing strategy?
Using new savings to top up underweight assets is a tax-efficient rebalancing tactic.
Portfolio drift occurs when: