There are two types of rebalancing on Niyo Money - SIP rebalancing and portfolio rebalancing.
SIP rebalancing helps you with updating the funds in your ongoing monthly SIP in all your goals so that fresh investment starts going into the new recommended funds right away. Please note that this involves only the future SIP installments going into the new funds. This does not involve any redemptions or re-investments in the already invested money (therefore no charges or taxes involved).
For example, if your SIP were in funds A, B & C and our latest recommended funds are X, Y & Z, then SIP rebalancing will simply modify your (future) SIP to funds X, Y & Z.
1. If you have external ongoing SIPs, they will not be rebalanced as we don't have that information and we can't stop SIPs registered with other brokers/platforms.
2. If you invest in the funds of your choice, and do not wish to change your SIP to the funds that we recommend, then you can simply ignore this recommendation.
To know why we think it's important to rebalance your SIPs, refer to this FAQ.
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.