Investing in 2025: How often should you rebalance your portfolio?

Tax and other fees should be carefully considered before selling investments

- Sashind Ningthoukhongjam

spot is reviewing his investment portfolio once every six months. "It's not too frequent nor too laid back." Kumar added that if the equity portion of an investor's portfolio swells up when stocks do well, it is advisable to bring it back to the predecided allocation level as per the investor's risk tolerance.

But do note: tax and other fees should be considered before selling investments, he said. Equities are taxed at 12.5% of the gains if held for 12 months or longer and at 20% if held for under a year. There is an exemption limit of up to ₹1.25 lakh in a year in capital gains of equity and equity-oriented funds. Debt funds are taxed at the slab rate.