Portfolio rebalancing has two benefits both of which increase your chances of achieving your goals:
a) It moves your money from old or non-recommended funds to our latest recommended funds (which we update yearly). This helps you earn higher returns on average than if you stayed invested in old funds. For more details about our Mutual Fund selection strategy, click here.
b) It keeps your risk under control by adjusting the asset allocation if it has deviated from what it should be according to your goal plan.
You can refer to this FAQ to understand the process (and steps) of Portfolio Rebalancing.
1. We recommend rebalancing your portfolio, even if your investments may be in losses. You can refer to this FAQ to understand why.
2. If you invest in the funds of your choice, and do not wish to change your investments to the funds that we recommend, then you can simply ignore this recommendation.
If you want to read in more detail about portfolio rebalancing, click here.
We also have YouTube videos available for all the common FAQs on SIP and Portfolio Rebalancing. This will hopefully make it simple to understand the entire process and help clarify any doubts that you may have.