1. There are two aspects to be careful about in asset rebalancing.
2. One is the amount of monitoring or work required to be undertaken by one's own self, and the second is tax implication of these activities.
3. Both are easily taken care of by not doing all this yourself at all and using a Hybrid fund instead, which is ironically the most under-appreciated category in mutual fund investing, as it does all of these automatically and without any tax liability.
4. While a Hybrid Aggressive fund invests 65%+ of its assets in equity, there are Hybrid funds with other rebalancing options too, to select as per own debt-equity ratio.
5. More importantly, when the market goes down, a Hybrid fund falls less, due to inbuilt auto-rebalancing mandate, and prevents us from taking rash untimely decisions, that can be counter-productive in building a long-term corpus, for 4% withdrawal from it perpetually, to meet annual retirement expenses.
2. One is the amount of monitoring or work required to be undertaken by one's own self, and the second is tax implication of these activities.
3. Both are easily taken care of by not doing all this yourself at all and using a Hybrid fund instead, which is ironically the most under-appreciated category in mutual fund investing, as it does all of these automatically and without any tax liability.
4. While a Hybrid Aggressive fund invests 65%+ of its assets in equity, there are Hybrid funds with other rebalancing options too, to select as per own debt-equity ratio.
5. More importantly, when the market goes down, a Hybrid fund falls less, due to inbuilt auto-rebalancing mandate, and prevents us from taking rash untimely decisions, that can be counter-productive in building a long-term corpus, for 4% withdrawal from it perpetually, to meet annual retirement expenses.