Rebalance of Investment baskets: All your need to know

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You need to execute the update the stocks or ETFs you hold match the basket published by advisor. Basket are updated by the advisor regularly to improve the overall performance.

Get better portfolio performance

Executing the updates keeps your investments upto date and increases your chance of getting higher returns

Rebalance FAQs

What is rebalance?

Rebalancing is the process of reviewing the stocks and their weights of a basket. Advisors on Investo platform publish updates so that the better performing stocks are added or increased in terms of weightage. You can execute the rebalance seamlessly through Investo. Stocks that are reduced in terms of weightage will be sold and stocks whose weightage is increased will be bought using those funds.

Is it mandatory to execute the update?

Rebalance updates are recommended to get superior returns in the long term. Rebalance updates ensure that the baskets of stocks are the best performing and as per the advisor's latest recommendations.

Are there any charges?

When you buy and sell, charges for buy / selling of stocks applies as per the broker account. You can view the exact value of charges from Broker pricing page. Investo doesn't charge for any of the rebalances done through the platform.

Does this lead to any tax implications?

Yes, there are tax implications when you sell stocks and buy stocks. During rebalance, you would be selling few stocks from your portfolio and buying few new stocks.

Any gain or profit earned through equity will be categorised under capital gains, which can be subdivided into:

1. Long term capital gain (LTCG): equity delivery based investments where the holding period is more than 1 year
2. Short term capital gain (STCG): equity delivery based investments where the holding period is lesser than 1 year

Taxes on long-term capital gains for equity are discussed below –

For stocks/equity – 0% for first Rs 1 Lakh and @10% exceeding Rs 1 Lakh

For stocks/equity: 15% of the gains i.e If Rs 100 profit is earned, 15% of that, Rs 15 will be considered as tax.

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