Rebalancing
Bringing your investments back to your chosen split after markets move them.
If equity rises from 60% to 70% of your money, selling some and buying debt returns you to 60/40. It makes you sell high and buy low by rule rather than by feel.
Once a year, or when a share drifts more than 5–10 points, is common. Mind the tax and exit loads on sales; redirecting new SIPs can rebalance without selling.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.