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Calculate rebalancing amounts to restore target asset allocation
Total Portfolio Value
Equity Adjustment (buy/sell)
Debt Adjustment
Gold Adjustment
Portfolio rebalancing is the disciplined practice of readjusting your investment mix back to target allocation. Start with goal: 60% equity, 30% debt, 10% cash. After market movements, equity might become 70% (outperformance), debt 25%, cash 5%. Rebalancing means selling some equity, buying debt/cash to restore 60-30-10. In India's volatile market, rebalancing prevents "return chasing"—the mistake of holding winners too long (over-concentrated risk) or panic selling losers (buying high, selling low). Disciplined rebalancing (quarterly or annually) forces contrarian buying (buying debt when returns low, selling equity when returns soaring), improving long-term returns by 1-3% p.a. This calculator identifies when rebalancing is needed (e.g., equity drifted from 60% to 75%, rebalance trigger at 5-10% drift), calculates exact buy/sell amounts, and motivates discipline. SEBI-certified financial advisors emphasize rebalancing as crucial to long-term wealth preservation and risk management.
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This calculator is provided for informational and educational purposes only. While we strive for accuracy, results should be verified with official sources or by consulting qualified professionals. Tax laws, rates, and regulations are subject to change. GotRedFlags is not responsible for financial decisions made based on these tools.