Where it is

ScreenDashboard and PortfolioBasic

The Rebalance due pill on the Dashboard card and the portfolio header; Rebalance now on the card and in the portfolio action bar. Basic and Advanced.

What it means

When a rebalance falls due, the portfolio shows Rebalance due and a full cycle ring. Rebalance now opens "Confirm rebalance": it trades at live market prices, stops by itself if any stock has no live price, and ranks on last week's rankings. It says since when it has been due and what the last rebalance did, then asks for your consent. Confirm rebalance sends the orders to your broker.

The formula

A rebalance brings the holdings back to the strategy's current list and weights: it sells what left the list and buys what joined. Nothing is sent before your consent and Confirm rebalance.

As computed in the RupeeCase app
Due = the next rebalance date has arrived
Rebalance = sell what left the list, buy what joined, back to target weights, at live prices
Rankings: last week's; a stock with no live price stops the rebalance
Orders go only after consent and Confirm rebalance

Worked example

Example only

  • Portfolio Rs 3,00,000 in 20 stocks of about Rs 15,000
  • 4 stocks leave the list: about Rs 60,000 is sold
  • About Rs 60,000 buys the 4 that joined: turnover about 20%

How to read it

  • "Due since" says how long it has waited.
  • The last rebalance line shows its trades and traded value.
  • Cancel closes the sheet; nothing is sent.

Watch out

  • Confirm rebalance on a Live portfolio places real orders at your broker.
  • It needs live prices: a stock with no live price stops it.
  • Every rebalance has charges; the Ledger shows them.

Transcript

The video has no sound. These are its on screen captions, chapter by chapter.

  1. 0:00Where it is. When a rebalance is due, the card says so and the ring is full.
  2. 0:16What it means. It trades at live prices and stops if a stock has no live price.
  3. 0:40Worked example. Worked example, example only: Portfolio Rs 3,00,000 in 20 stocks of about Rs 15,000. 4 stocks leave the list: about Rs 60,000 is sold. About Rs 60,000 buys the 4 that joined: turnover about 20%.
  4. 0:46How to read it. How to read it: "Due since" says how long it has waited. The last rebalance line shows its trades and traded value. Cancel closes the sheet; nothing is sent.
  5. 0:52Watch out. Watch out: Confirm rebalance on a Live portfolio places real orders at your broker. It needs live prices: a stock with no live price stops it. Every rebalance has charges; the Ledger shows them.

Terms in this tutorial

  • rebalancingPeriodic reset of portfolio holdings back to target weights or a new selection.
  • turnoverPercentage of portfolio that changes in a rebalance.
  • transaction costAll costs of trading including brokerage, STT, exchange charges, GST, and slippage.

Learn it in depth