Why it is the best time Re-Balance your Asset Allocation? | How to do Re-balancing? | Parimal Ade
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- čas přidán 28. 08. 2024
- Are you wondering if now is the best time to re-balance your asset allocation? In this video, we will discuss the benefits of re-balancing and why it's important to do so, especially during times of market volatility.
We will cover the basics of asset allocation and explain how it can help you achieve your financial goals while managing risk. We will also discuss the importance of regularly re-balancing your portfolio to ensure that your investments are aligned with your goals and risk tolerance.
We will provide step-by-step guidance on how to re-balance your portfolio, including how to determine your target asset allocation, assess your current holdings, and make adjustments as needed.
Additionally, we will discuss some of the challenges and risks associated with re-balancing, such as transaction costs and tax implications, and provide tips on how to minimize these risks.
By the end of this video, you will have a clear understanding of why re-balancing your asset allocation is important and how to do it effectively. So, whether you're a seasoned investor or just getting started, be sure to watch this video to learn more!
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One should not forget about tax implications on redeeming funds before 1 year
Thanks for creating this video, please add asset allocation or preference change in NPS also. Large chunk of money is pooled in NPS these days and looking at current market it is fearsome to add money in NPS as well!
Watching this video when market is around 71,500. Crazy how he mentioned markets at 60,000.
The point made at 2:39 is valid as can be seen in 2022
Sir please make a video on tax harvesting
Why it is good or bad
Sir, I have a different view on Asset Allocation. I feel by rebalancing, one looses out on wealth creation. What I follow is asset allocation at the time of investment. If I invest " x " amount every month, I decide my debt / Equity allocation at that time.
Why should I miss out on compounding and chance at wealth creation ?
You got a valid point but think of it this way -
Say you start with an AA of 70eq/30b, then -
1. there is a rally, leading to 80eq/20b, then, w/d 10% eq and invest that into bonds, thus, rebalancing you Portfolio to 70e/30b.
Or
2. Market goes down, leading to 60eq/40b, then w/d 10% bonds and then invest that into equities systematically. This way you re-enter the equities at the fallen market price, thus, adding to your compounding. Your portfolio is now rebalanced to 70eq/30b.
What I feel is that your strategy ie rebalancing disturbs the compounding would happen if you follow point 1 only. If you re-enter at lower market price, you are essentially taking advantage of lower cost thus leading to higher rate of compounding (should the market rise in future).
W/d from a rising market will disturb compounding only if there are linear returns (one direction return). But, rebalancing should work well where the returns are non-linear (two directional returns ie Northwards or Southwards).
What are your thoughts?
@@salgsalgglas : Thank you
That is interesting. Regards.
Thanknu soooooooo much.. so innovative idea to over come the mental pressure to book profit in stocks...
Beautifully explained
Fantastic !! Smart Intelligent Way of Safeguarding Hard earn money ...Thnx
Should a student focus on asset allocation or not? I am 20 year old but I have over 83% in equity (MFs, etf and direct stocks combined) should I rebalance or carry on as it is?
Start after 28 to 30
@@yashcharan18Ur's is a Bad Advice bro. Time in the market is the most important. Start as early as you can but start with small amounts. Don't invest in lumpsum. Invest as an SIP in MF or even directly.
This strategy makes full sense !!👍
Not all all ...it disturbs long term compounding plus exit loads
Excellent video sirji
last week rebalanced portfolio and this week there is red colur😊😊😊☺️☺️
So it is below your asset allocation for Equity😉😉
@@SouravSen9748 yes for this time being,but principle incresed with profit☺️☺️
@@dr.deepakkumbhar I mean doing asset allocation in the predetermined date is really good to manage behaviour 😀
@@SouravSen9748 yes,ofcorse and should be ,otherwise your money will be in the hand s of fate.
Tax is stopping me to do so..
Sir, fully agree with you.
Thank you sir😊🙏🏼
Thank you
Thanks Sir 🙏🙏
Sir, i was going increasing my investment by 96% in equity mutual funds. I started investing 6 months back. Should i wait for another month or two to do that increment or should i go forward with it now only.
Interesting perspective 🙂
Sir, I watch your each and every video and I am a fan of your investment ideology.
I have a question, if I follow asset allocation strategy but instead of selling stocks to balance portfolio if I buy to manage % of allocation.
I am building portfolio, so I add money every months. So as part of asset allocation if 60% of equity allocation rose to 75% then I can stop investing for few months in equity instead invest in gold or debt or liquid to rebalance my allocation.
Is it a good strategy to build up portfolio, please let me know pros and cons of this approach.
Pros : won't affect compounding , no exit loads , no regular market attention nd time wastage
Cons : ur Portfolio would fall in the bear run which u could have taken out nd could have bought on Discounted prices
Sir please make a video on how we calaculate the returns we are earning while doing SIP. I am facing a problem in calculating what are the returns I am earning
Download TVM calculator. It's useful .
Dear sir, where to park the money after rebalancing..
1. Switch to a debt fund of the same fund house
2. To saving bank account or somewhere else? Please🙏
1st option is better
@@InvestYadnya Thank you.
What if my asset allocation has increased from 40 to 50%, but my ideal target is to reach 60% allocation...which I am yet to reach. Should I still sell equity to come back yo 40% which was my original allocation?
No
Good job
Example will be good
Wow ❤️ Quality 👍
Sir,, Very lengthy video you could have told that in 7-8 minutes
An example would have been more clear.
Very confusing generic statements about portfolio rebalancing.
Sir, with due respect.. please don't stretch so much.. it could be completed in max 3 minutes.. every ones time is precious
No i have free time
Parimal ade sir k twitter p 40 k se jyada followers aur gaurav sir k only 5k.
Parimal ade is best.
Problematic. Market returns are not consistent. The good years cover for the bad ones. You trim in good times, it will affect overall returns. Solution would be gradual rebalancing instead of one go to average out if at all required.
Could u explain it in detail
A video last live session ka hi he. 😀
And 2% crypto 😁
Sir long term tak investment rakhna ho to bhi rebelencing karni hogi? Mai model portfolio subscriber hu SIP stocks me. retiredment ka goal hai kya mai email pe detail du to aap help karo ge ?
Send the detail on contact@investyadnya.in
Your just giving profit booking another name
Not convinced!
Y
👍🏻💎
First view
Join STOCK BANKNIFTY OPTION TRADING JACKPOT and double your investment;
Highly uninformative video...kuch aata nahi toh dusro ka time pass ku karte ho..
Sir, aap aise swamiji jaise mat baat karo