Niyo Money Help Centre

Portfolio rebalancing is a 3 step process that can take some time:

Step 1: Switch -  A switch transaction involves redeeming from one fund and reinvesting in another fund of the same mutual fund company. The redemption and reinvestment happen directly without the redeemed money first being credited to your bank account. A switch can take 3-5 business days to take place. This is applicable only if you have any old and new funds from the same mutual fund company.

Step 2: Redemption -  After the switch, we place a redemption (withdrawal) request for the remaining funds. It can take up to 3-5 business days for the amount to come to your linked bank account.

Step 3: Reinvestment - After the redemption amount has come to your bank account, this amount is scheduled to be reinvested into the new recommended funds. The reinvestment date is scheduled considering the redemption timeline and your auto-debit limits. Once the reinvestment takes place, it can further take up to 3-5 business for the mutual funds to provide us details about the units, NAV, folio number, etc which we use to update your dashboard and mark your investment as executed.

All of these transaction dates are automatically prescheduled once you initiate rebalancing. The system needs to consider the ideal timelines (and it's structured to account for non-working days such as Saturday & Sundays) for each step while scheduling these and thus portfolio rebalancing is spread over some time. It may take some time, but once you have approved it, you won't have to do a thing. It's completely automated.

Thanks for your patience!

To see the current status (and all details) of your rebalancing (in progress), you can follow these steps:

Home page → Menu (bottom right) > Mutual Funds > Rebalance Investments > Rebalance Portfolio. 

The screen will show you if you have any rebalancing in progress and you can click on the “see timeline” option to check the exact status and further details.

Here you will be able to see the information about the dates (redemption date, reinvestment date, etc) and transaction details (which ones are in progress, which ones are executed, etc.). 

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.