Swarup Mohanty on art of rebalancing a well diversified portfolio

Swarup Mohanty, CEO, Mirae Asset Investment Managers (India), says that while some people buy and hold, it has the big disadvantage of not rebalancing at times..

How important is it for you to be well diversified across asset classes?..

Some people look at real estate and the proportion with which you allocate it to catch a balanced return on your overall portfolio allocation across asset classes, becomes very important..

I would be more favourable to the people who review and rebalance at a specific periodic level that gives a more sustainable process to investing and more scientific approach to approaching the volatility or catching the upside and the downside of the market through a very clinical mathematical approach...

That question invariably is meaningless. What you should ask yourself is why do you want to invest and hence this is my return expectation based on that return expectation; this is the kind of risk I can take and hence I can invest in a certain type of asset classes...

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