Rebalancing has two benefits both of which increase your chances of achieving your goals:
a) It moves your SIPs from old or non-recommended funds to our latest recommended funds (which we update yearly). New Mutual Funds recommendations are based on the latest data and are likely to perform better than last year’s Mutual Funds.
b) It keeps your risk under control by adjusting the asset allocation according to your goal plan.
Note: There are no charges or taxes involved in SIP rebalancing.
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.