Maximize Mutual Fund Returns: SIP Portfolio Rebalancing Guide

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Is Your Portfolio Drifting?

Your disciplined SIPs are great, but market swings can make your investments deviate from your original plan, leading to unintended risks or missed growth. Don't just 'set it and forget it'!

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Rebalance: Your Secret Weapon

It's adjusting your portfolio back to your target allocation (e.g., 60% equity, 40% debt). This smart move controls risk, helps book profits, and lets you buy low.

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When to Rebalance?

Choose a time-based approach (annually/bi-annually) for simplicity, or a threshold-based method (e.g., rebalance if an asset deviates by >5-10%). Discipline over emotion!

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Practical Steps to Rebalance

1. Review current allocation. 2. Identify deviations. 3. Decide: Sell & Buy, or Adjust Future SIPs. 4. Execute. 5. Re-evaluate your financial goals and risk tolerance.

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Avoid These Rebalancing Blunders

Don't ignore tax implications, exit loads, or make emotional decisions. Avoid over-rebalancing. Most importantly, always have a clear, predefined asset allocation strategy!

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Take Control of Your Wealth!

It's time for your financial health check-up! Review your portfolio today. Use goal SIP calculators at sipplancalculator.in to align your investments with your big dreams!

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