1. During a lifelong investment journey, periodic review (annually or biannually) of fund portfolio is important to know how various funds are doing against their earmarked long-term goals, fixed during original asset allocation.
2. After review, rebalancing is done, by redeeming an appropriate amount from any "runaway" equity funds and shifting proceeds to debt fund first, and then systematically reinvesting it in all equity funds again for achieving original mix for the changed corpus.
3. Rebalancing of portfolio on a regular basis should also be done on changing needs or situations.
4. During review, laggard funds are weeded out, along with any funds which may have served their goals.
5. For "dumping" bad funds, you can read this blog of mine:-
https://iamrajen.blogspot.c...
6. Even mutual fund ratings can suffice for this exercise, by choosing 4/5-star funds with high 5+ year returns, in the top quartile from each category.
7. My below blog on fund ratings may be handy too:-
https://iamrajen.blogspot.c...
2. After review, rebalancing is done, by redeeming an appropriate amount from any "runaway" equity funds and shifting proceeds to debt fund first, and then systematically reinvesting it in all equity funds again for achieving original mix for the changed corpus.
3. Rebalancing of portfolio on a regular basis should also be done on changing needs or situations.
4. During review, laggard funds are weeded out, along with any funds which may have served their goals.
5. For "dumping" bad funds, you can read this blog of mine:-
https://iamrajen.blogspot.c...
6. Even mutual fund ratings can suffice for this exercise, by choosing 4/5-star funds with high 5+ year returns, in the top quartile from each category.
7. My below blog on fund ratings may be handy too:-
https://iamrajen.blogspot.c...