Portfolio rebalancing means making changes in your existing funds/asset allocation so that it matches the recommended funds/asset allocation as per your goal plan.
It involves redeeming money that is invested in old funds and re-investing them in the current fund recommendations as per your goal plan.
In some cases, it may also involve redeeming some amount from equity funds and re-investing it in debt funds (or vice-versa) when your current asset allocation does not match the recommended asset allocation as per your goal plan.
This could be because either your current asset allocation is not according to your chosen risk level or in case of life goals, because you have now moved closer to your goal hence need to lower risk by increasing debt and decreasing equity.For each goal that needs rebalancing, you will be shown exactly what the changes are going to be before you decide.
We do this in a very cost and tax efficient manner by only recommending you to rebalance that part of your portfolio (at a given time) which is free of exit load charges and short term taxes.
If you want to read in more detail on how it is done, click here.