Amazines Free Article Archive - Friday, February 21, 2020
Read about the most recent changes and happenings at
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Subscriptions Manage Ezines
 Article Archive
 Advertising (133332)
 Advice (161023)
 Affiliate Programs (34736)
 Art and Culture (73705)
 Automotive (145681)
 Blogs (75077)
 Boating (9841)
 Books (17218)
 Buddhism (4125)
 Business (1328753)
 Business News (426329)
 Business Opportunities (366276)
 Camping (10962)
 Career (72739)
 Christianity (15846)
 Collecting (11637)
 Communication (115053)
 Computers (241957)
 Construction (39000)
 Consumer (49681)
 Cooking (17062)
 Copywriting (6568)
 Crafts (18205)
 Cuisine (7539)
 Current Affairs (20394)
 Dating (45784)
 EBooks (19687)
 E-Commerce (48206)
 Education (185272)
 Electronics (83503)
 Email (6395)
 Entertainment (159847)
 Environment (28940)
 Ezine (3039)
 Ezine Publishing (5446)
 Ezine Sites (1550)
 Family & Parenting (110907)
 Fashion & Cosmetics (196392)
 Female Entrepreneurs (11842)
 Feng Shui (130)
 Finance & Investment (310308)
 Fitness (106240)
 Food & Beverages (62879)
 Free Web Resources (7938)
 Gambling (30230)
 Gardening (25115)
 Government (10515)
 Health (629697)
 Hinduism (2205)
 Hobbies (44047)
 Home Business (91562)
 Home Improvement (251376)
 Home Repair (46148)
 Humor (4826)
 Import - Export (5453)
 Insurance (45134)
 Interior Design (29562)
 International Property (3485)
 Internet (190991)
 Internet Marketing (146348)
 Investment (22827)
 Islam (1167)
 Judaism (1356)
 Law (80542)
 Link Popularity (4593)
 Manufacturing (20842)
 Marketing (98794)
 MLM (14136)
 Motivation (18213)
 Music (27006)
 New to the Internet (9480)
 Non-Profit Organizations (4048)
 Online Shopping (129617)
 Organizing (7803)
 Party Ideas (11856)
 Pets (38078)
 Poetry (2234)
 Press Release (12676)
 Public Speaking (5618)
 Publishing (7523)
 Quotes (2407)
 Real Estate (126634)
 Recreation & Leisure (95301)
 Relationships (87564)
 Research (16160)
 Sales (80325)
 Science & Technology (110228)
 Search Engines (23463)
 Self Improvement (153103)
 Seniors (6233)
 Sexuality (35943)
 Small Business (49288)
 Software (82996)
 Spiritual (23468)
 Sports (116093)
 Tax (7658)
 Telecommuting (34068)
 Travel & Tourism (307556)
 UK Property Investment (3121)
 Video Games (13428)
 Web Traffic (11729)
 Website Design (56833)
 Website Promotion (36575)
 World News (1000+)
 Writing (35777)
Author Spotlight

Financial analyst and author writing on economy and business. ...more

I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more

My Name is Anish Sah, I am an Internet Marketing and SEO Expert, Social Media Guru and young Entrepr...more

In regards to earning money online, everybody wishes to, and everybody strives to, but not many end ...more

I am in Nepalest tourism industery working since 2000 as a trekking porter to the senior tour leader...more

3 Successful Strategies to Rebalance your Portfolio by Ramalingam K

Article Author Biography
3 Successful Strategies to Rebalance your Portfolio by
Article Posted: 08/17/2017
Article Views: 322
Articles Written: 101
Word Count: 1024
Article Votes: 0
AddThis Social Bookmark Button

3 Successful Strategies to Rebalance your Portfolio

Finance & Investment
“I get reminded of previous generation mom when someone advises me to rebalance my investment portfolio. I feel like my mom telling me to take oil bath on all Fridays. When everything is going fine, why I should rebalance my portfolio?” one of my client asked me with a smile in his face. I reciprocated his smile and explained him why it is necessary to rebalance his portfolio periodically.

Rebalance your portfolio. Isn’t it an often ignored suggestion? Yes, it is. If you want to take up a healthier investment approach, rebalancing your portfolio is very important. Let us look at how you can rebalance your portfolio and the key benefits associated with it.

What is all about rebalancing the portfolio?

Building a portfolio basically starts with target allocations. Initially, you decide to invest on products with a strategy. It could be something like 50% on stocks, 20% on bonds and the remaining 30% on other options. The rebalancing is done to adjust your investment portfolio to keep it on track as you planned.

You have invested on products and things are going fine, why is it necessary to change it now in the name of rebalancing?

Say, 20 years back, people were looking for jobs in government entities or banks where the ‘job security’ was dominating their mind-set. Later, they moved on to become engineers and then as IT professionals as ‘a big salary, trip abroad’ and ‘owning a big house’ dominate the mind-set. Now I see a lot of budding entrepreneurs as ‘owning a business’ or‘balancing the family-work life’ is dominating the minds. The dominating quality and the mind-set have been changing in people for good. If you are not ready to change, survival becomes challenging.

In parallel to the mind-set, risk tolerance is changing in every generation. Isn’t it? Likewise, the initial decision to allocate your investments on selected products depends on your risk tolerance.The market fluctuations, performance of the currency and the economic status of the country change the way your investment portfolio works. In the long run, if you do not balance the act, your investment portfolio becomes either too risky or too conservative.

For example, you have invested majorly, say, 75% in company stocks while setting up your portfolio. If the equity market has done well in one particular year, then this 75% exposure may become 85% because of over growth in equities. Similarly 75% equity exposure may become 65% because of market crash. We need to periodically rebalance the portfolio to 75% either by reducing or increasing the equity exposure. In this way, you keep your investment portfolio on right track.

This will reduce your overall risk and increase the return potential. You will be booking partial profit when market is moving up. You will invest when the markets are crashing. You will be able to follow “buy low and sell high” in a disciplined way. What should I do to rebalance my portfolio?

There are three different strategies help to rebalance your portfolio. Let us look at these approaches in detail.

Strategy 1 - Scheduling the portfolio rebalancing:

This approach is rebalancing your portfolio on a predetermined periodicity.. Fix a period like monthly, at every quarter, 2 times a year or yearly to rebalance your investments. For example, if you are fixing the period as quarterly, look at the investments at a fixed time. Even though there are no hard and fast rules on when you want to start, it is better to fix it according to the financial year, say, it will be April, July, October and January. It will also help you while planning your taxes. Take an example of first quarter which starts in April. Come what may and how little your portfolio has changed, rebalance it in April. Here, you are looking only at your investments and not how the market works.

Strategy 2 – Threshold approach of portfolio rebalancing:

In this approach, you pre-set a certain degree of changes in your investments. You allow your investments to remain the same unless here is no change occurring to a set degree. The balancing act begins when the investment portfolio changes beyond the set degree. For example, if the set degree is 10% you can allow your investments to go low or high up to 10%. When the change exceeds or goes low even to 11% or 9%, it is time to kick start the rebalancing act.

Set a lower or tighter degree for certain investment products like real estate, equities or emerging market stocks. With this approach, you have to keenly monitor the investments and work harder. But you have a great advantage of lowering the risk by adjusting your investments depending on the market fluctuations.

Strategy 3 – Combining scheduling with threshold approach:

Through this combination approach, you can use the scheduling to analyse the portfolio and rebalance it according to the threshold approach, i.e., in case of changes occur to a degree set by you.

For example, if you have set a monthly scheduling and 5% as your rebalancing strategy. You analyse your portfolio at a fixed date or day in a month. After analysing, look at how the investments have changed. If they have changed beyond a set degree of 5%, rebalance your portfolio by changing the investments and bring it on track.

Adjust the approaches depending on your need and the time you can spend on the exercise. Sometimes, keeping a degree as low as 5% may require a lot of time to be spent on it. If you cannot allocate such time, increase the degree. Likewise, on the scheduling, you can change it from monthly to quarterly. Not able to do it as planned may lead to frustration and you may end up not doing it. Be flexible, but do not change the pattern frequently.

Balance your rebalancing act by strategizing it well!!

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners ( a firm that offers Financial Planning and Wealth Management. He can be reached at

Related Articles - successful stratergy, portfolio,

Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.


Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
Please enter the code in the image:

 Author Login 
Register for Author Account


Advertiser Login


   Limited Time $60 Offer!
   90  Days-1.5 Million Views  


Great Paranormal Romance


Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more

Stevert Mckenzie, Travel Enthusiast. ...more

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more

An experienced, resourceful and highly motivated IT professional, with a proven record of success in...more

Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more

I am not a writer nor am I trying to become a writer. I am an average person with average intelligen...more

Kiranpreet (Kiran) Kaur, D.D.S., who received her Doctor of Dental Surgery degree from the prestigio...more

Steve Burgess is a freelance technology writer, a practicing computer forensics specialist as the pr...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2020, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from under the GNU FDL license