Portfolio rebalancing dashboard
Strategy 8 min read

Rebalancing While Running SIPs: Use Cash Flow First

The tax-aware way to rebalance is often redirecting new contributions—not selling winners every month.

SIPs create a continuous stream of new capital. Direct that capital to underweight sleeves before you harvest gains in taxable accounts.

  1. Set target weights and drift bands.
  2. Each contribution period, buy what is light.
  3. Do a calendar review once or twice a year.
  4. Sell to rebalance mainly when cash flow cannot fix the drift—or inside tax-advantaged accounts.

Conclusion

Let SIPs do dual duty: grow wealth and maintain allocation. Trading should be the exception, not the hobby.

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