Lesson 36 of 53 · Rebalancing your mix · 3 min read · Reviewed 29 Oct 2026
Moving money back to the mix you chose. A 60:40 equity to debt split that becomes 70:30 after a rally is moved back by selling some equity or adding to debt. A switch between funds is a sale, so it can bring tax and an exit load; adding new money to the smaller side avoids both.
Markets move your mix. After a rally equity takes a bigger share than you planned; after a fall, a smaller one.
Rebalancing moves it back, on a set date or when the mix drifts by a set amount.
A switch is a sale and a purchase. It can trigger capital gains tax and an exit load of up to 3%.
Key idea: Directing new SIPs to the side that has fallen behind rebalances without selling anything.
Try the short quiz on this page to check what stuck.
Once a year, or when the mix drifts 5 percentage points or more, are common rules people set for themselves.
Back into the scheme, for the investors who stay.
Yes, as a redemption and a purchase.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.