
googled and found these articles from FSM....
This blog did have some almost similar situation as posted by puchongnite....and he shows how he did that.....
Sui Jau’s blog
Rebalanced my portfolio for 2014
https://secure.fundsupermart.com/main/resea...SJBlog_20131227then the rests are from FSM....hope it can provide you with some easy to read and understand materials
Everything You Need to Know about Rebalancing-webcast
https://www.fundsupermart.com.my/main/fsmwe...atSubHeaderId=2Rebalancing Works For Your Portfolio
Investors hear it often enough that it is important to rebalance one's investment portfolio, but just how effective is rebalancing? Our General Manager delves deeper to find out.
https://secure.fundsupermart.com/main/resea...?articleNo=2215The Nature of the Game – Rebalancing
In order to “play” the game of investing, we need to be “in the game” longer than our fellow peers. Rebalancing is a strategy that can keep you “in the game” for longer.
https://www.fundsupermart.com.my/main/resea...ebalancing-4232The Importance of Rebalancing A Portfolio
We have been maintaining this mechanically rebalanced portfolio so as to highlight the importance and benefit of rebalancing. In this update, we revisit the basics of rebalancing and remind investors of the importance of rebalancing one’s portfolio.
https://www.fundsupermart.com.my/main/resea...-Portfolio-5374As The Year Comes To A Close, Consider Rebalancing….December 17, 2010
The rebalancing method has shown that over a long period of time (our back test is over 40 years), a portfolio that used the rebalancing method has outperformed passive buy and hold methods by a quite a large margin. Did it outperform in 2010?
https://www.fundsupermart.com.my/main/resea...Rebalancing-842End of the Year, It's Time to Rebalance! December 28, 2012
As we come to the end of the year, investors who are reviewing their portfolio might wish to consider rebalancing if they want a disciplined method that works over the long term.
https://www.fundsupermart.com.my/main/resea...lance!-3024Clearing Your Doubts On Rebalancing
https://www.fundsupermart.com.my/main/resea...?articleNo=1980Rebalancing: Are You Doing It Right?
FSM look to provide investors with a short guide on portfolio rebalancing and discuss how it helps investors to maximise returns of their portfolios.
https://www.fundsupermart.com.my/main/resea...gust-2017--8679Mythbusting: Frequent Rebalancing Improves Portfolio Returns
You might have heard this one before: Frequent rebalancing to simultaneously lock in profits and dollar cost average into lower priced assets will provide better returns. We examined the myth and here's what we found.
https://www.fundsupermart.com.my/main/resea...lio-Returns-566What Is Rebalancing?
Rebalancing involves setting a fixed allocation to your portfolio and sticking to it regardless of market movements.
For example, an investor sets an allocation of 30% into US equities, 30% into Asia equities, 30% into Europe equities, and 10% into Japan equities.
Every year, regardless of how markets have performed, the portfolio is rebalanced back to its original asset allocation.
Rebalancing forces investors to take profit from funds that have gone up, and buy into the funds that have gone down.
So, as the market go through their cycle of ups and downs, the method will eventually result in an investor “buying low and selling high”, which is the recipe for a successful portfolio.
This is because no market stays low indefinitely – similarly, no market goes up all the time and never comes down!
https://secure.fundsupermart.com/main/resea...?articleNo=2215in a nutshell....
"The construction of a portfolio requires one to decide on an asset allocation that is able to achieve one's investment objectives while within the perimeters of one's risk tolerance and investment horizon.
However, in reality, given that financial markets do not move in tandem or in similar fashion, the odds are that an investor's portfolio would deviate from one's original targeted asset allocation.
Rebalancing is a technique that removes emotions from investing and enables investors to ensure that their portfolio maintains its original asset allocation.
With rebalancing, one would be taking profits from the best performers and re-investing the profits into the underperformers. The principle behind rebalancing is simple and straight forward: no single market will be the best performing market forever, nor will any single market be the bottom performing market for eternity.
As the various economies and financial markets undergo their respective cycles, the method of rebalancing will eventually result in one buying assets when they are cheap and selling assets when they have risen in price.
Ultimately, an investor would be buying low and selling high through the simple process of rebalancing, which makes for a successful investor and a portfolio that has historically shown to have delivered stronger returns."
https://secure.fundsupermart.com/fsm/maps/m...lio-rebalancingThanks for all the post, good reading.
I just found out from Mr. Wong Sui Jau post, that he diversify his PF to 4 parts mainly US, Europe, Japan and Asia quite equally. Do you guys diversify like that too? My PF mainly Asia almost 60%, US around 20%, Europe less then 10%. Any good US and Europe fund to look out for? Should i balance out my PF like what Mr. Wong did? Thanks in advance.