Rebalancing your mutual fund portfolio is the best way to 'buy low and sell high.Learn what is Rebalancing ,how to reblance your mutual fund portfolio.

1. HOW TO REBALANCE YOUR
MUTUAL FUND PORTFOLIO

2.  Rebalancing is a mutual fund investment strategy used for performing
tune-ups of your investments.
 It is an important tool for effective risk management.
 Rebalancing is a simple contrarian strategy for adjustment of a
portfolio to restore the desired asset allocation mix.
WHAT IS REBALANCING?

3. WHY REBALANCING IS IMPORTANT?
 The main objective of rebalancing is risk management by maintaining
effective diversification.
 Rebalancing your portfolio is one of the keys to successful investment
that gives you to review all yours mutual fund plans.
 Rebalancing forces you to take profits from your investments that
already have ran-up and put money in funds that have merit but haven't
gone up.

4.  Rebalancing begins with a review of your mutual fund investment
plans, looking for any changes and how the allocation has been
shifted.
 It is best to sell some of the portfolio investments in asset classes that
are now overweight, and buy investments in underweighted asset
classes.
HOW TO REBALANCE YOUR INVESTMENT?

5. For example, you want to have 15% of your investments in global
equity, 50% in domestic equity, and 35% in fixed income, after one
year each of your investment classes has changed in value. Some went
up, others went down. Because of this, your last investment statement
shows your current portfolio is 20% global equity, 40% domestic
equity and 40% fixed income.
Now, you sell 5% of your global equity holdings, sell 2% of your
domestic equity holdings, and use those proceeds to buy more fixed
income assets so that in the end you are back to a 15%/50%/35% mix
of assets.
c o n t i n u e d . .

6. WHEN TO DO REBALANCE
 You should review your investment portfolio at least annually, many
investors rebalance in January; others may choose semi-annual and
too much like to do quarterly intervals. You can do it according your
convenience.
 You should scheduled a portfolio meeting with your mutual fund
investment advisor at least twice a year.

7. CONCLUSION
 Hope the tips we shared with you must be helpful for rebalance your
investment planning.
 An old saying: "In investing, what is comfortable is rarely
profitable." - Robert Arnott
 So start investing in mutual funds today to get high returns.

8. If you want invest in mutual fund visit Reliance Mutual Funds.
Or call us Toll Free No. : 1800-300-11111
Tel No. : 022 30301111
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