DIWALI CLEANING OF YOUR PORTFOLIO

LEANING an investment portfolio refers to reviewing, reorganising, and optimising investments to align with your financial goals, risk tolerance, and current market conditions.

- PV SUBRAMANYAM

This involves rebalancing—buying or selling assets to restore your desired asset allocation—while eliminating underperformers, reducing redundancy, and minimising costs. For a diverse portfolio, the process ensures diversification, manages risk, and improves long-term performance. It’s not a onetime event but should be done periodically, such as annually or when allocations drift by 5-10%. One important part of the cleaning process is to involve your family in the process.

Key steps to clean portfolio:

Assess Your Current Holdings: List all assets, their values, and percentages in your portfolio. Calculate your overall asset allocation (e.g., 40% equities, 20% real estate, 15% fixed income).