Khorwal Financials
Portfolio Review & Rebalancing
Your portfolio grows fastest when it's aligned, optimised, and actively managed
A portfolio review isn't a luxury for the wealthy — it's a necessity for every serious investor. Markets change, life changes, and funds change. A portfolio that was perfectly structured 3 years ago can be significantly misaligned today — without a single wrong decision on your part.
Research consistently shows that investors who actively review and rebalance their portfolios outperform those who don't — not by picking better funds, but by maintaining discipline and alignment over time. The "set and forget" approach is a myth that costs Indian investors crores every year.
At Khorwal Financials, we provide structured quarterly reviews that go beyond a performance snapshot. We assess your portfolio's health across 15+ parameters and deliver actionable recommendations — not a generic report.
Frequently Asked Questions
Q. Why is portfolio rebalancing important?
Portfolio rebalancing ensures your risk profile remains consistent with your original financial goals. Over time, some assets grow faster than others, changing your allocation (e.g., from 60:40 to 80:20). Rebalancing locks in gains and restores your intended risk profile.
Q. What is portfolio overlap?
Portfolio overlap occurs when you hold multiple mutual funds that invest in the same underlying stocks. This gives a false sense of diversification and often increases your overall risk and costs. We help identify and remove this redundancy.
Q. How often should I review my mutual fund portfolio?
At Khorwal Financials, we recommend a structured quarterly review. This frequency is enough to catch major drifts without over-reacting to short-term market noise.
Q. Does rebalancing involve tax implications?
Yes, selling mutual fund units may attract Capital Gains Tax (LTCG or STCG). Our rebalancing recommendations always include a tax-impact analysis to ensure the benefits of rebalancing outweigh the tax costs.
Review Frequency
Quarterly + Ad hoc
Ideal For
All investors with existing MF portfolio
Typical Improvement
0.5–2% better annual returns
Tax-Smart
Harvest losses, optimise gains
What Happens When Portfolios Aren't Reviewed
Overlap & Redundancy
Holding 8 large-cap funds when 2 would suffice. The 6 extra funds add zero diversification but cost you in tracking complexity and potentially higher expenses.
Performance Drift
A fund that was in the top quartile 3 years ago may now be in the bottom. Fund manager changes, style drift, and AUM bloat happen silently — until they don't.
Allocation Drift
After a strong equity rally, your 60:40 portfolio might be sitting at 75:25 — taking more risk than you intended. Rebalancing locks in gains and restores your intended risk profile.
Our 4-Step Review Process
Portfolio X-Ray
We analyse every fund in your portfolio — performance vs. benchmark, expense ratio, fund manager track record, category ranking, and overlap with other funds you hold. Most investors are surprised to find they've been paying for duplication.
Goal Alignment Check
Has your equity allocation drifted from 60% to 80% after a bull run? Are your 'short-term' debt funds still there from 5 years ago? We realign your portfolio to your current goals, not the goals you had when you first invested.
Rebalancing Recommendation
We recommend specific switches — which funds to exit, which to reduce, and where to redeploy — with full tax impact analysis. No generic advice; every recommendation is specific to your portfolio and tax situation.
Implementation & Tracking
We guide execution of the rebalancing plan, confirm all changes, and set up tracking so you always know where your portfolio stands vs. your goals. No more wondering if your money is working.
When to Trigger an Immediate Review
Annual salary increment — time to increase SIP amounts
Market has moved 20%+ in either direction — check asset allocation
A fund has underperformed its benchmark for 3+ consecutive quarters
Life event: marriage, child, job change, inheritance, or approaching retirement
Tax year-end — harvest losses and plan gain booking before March 31
Your financial goals have changed in scope, timeline, or priority
The Uncomfortable Truth
Most investors review their portfolio only when it hurts — after it has underperformed. By then, the damage is done. The best time to review is when everything seems fine. That's when complacency creates risk, and we catch it before it costs you.