Portfolio rebalancing by JioBlackRock

Rebalancing is the key to keeping your investment plan aligned with your investment objectives and risk appetite. As markets move or conditions change, your asset mix can drift, exposing you to unintended risks.

Imagine your investment plan, based on your risk comfort and objectives, is designed with an optimal mix of 60% stocks and 40% fixed income instruments. Over time, market movements can cause this balance to change.

For instance, if equity markets perform well, your portfolio mix may change to 66% equities and 34% fixed income. While this reflects market gains, it also means your portfolio is now exposed to higher equity risk and volatility than originally intended. This is when rebalancing becomes important.

Rebalancing involves adjusting your portfolio to bring it to its planned asset mix, ensuring it continues to align with your risk profile and investment objectives.

Above depicted numbers are illustrative example

At times, the Investment team based on their research and assessment of market conditions may recommend temporary, tactical adjustments to your portfolio. For example, in certain market conditions they may suggest reducing equity exposure and increasing allocations to fixed income or cash to manage risk or take advantage of emerging opportunities. These recommendations are driven by rigorous data analysis and are designed to help keep your investment journey on track. In such situations, you may be advised to make adjustments to your asset allocation through rebalancing, but keeping into account your risk profile and investment objectives.

In summary, rebalancing helps ensure your advised portfolio:

• Stays aligned with your comfort level with risk
• Remains focused on your investment objectives
• Can adapt to market changes, opportunities or risks in a disciplined manner

By periodically rebalancing, you can navigate the market confidently, protecting your plan while staying invested for the future.

• Step 1 Daily monitoring: Using BlackRock’s proprietary technology Aladdin, we monitor your portfolio against the advised asset allocation every day.

• Step 2 Detecting a rebalancing need: Aladdin enables us to look beyond prices. With its advanced analytical capabilities, we can analyse how your investments are spread across different sectors and risk factors. If we notice your portfolio has shifted from your originally advised investment plan or identify tactical adjustments, we will nudge you on the app to rebalance, explaining what changed.

• Step 3 One-click rebalance: With the one-click option in your app, you can rebalance your portfolio whenever nudged/advised. This feature helps keeping your investments aligned with your personalised investment plan.

To keep your portfolio on track it is essential to staying aligned with your investment objectives and risk comfort. Market movements are inevitable, but with BlackRock’s proprietary technology Aladdin, you don’t have to worry about constant monitoring or complex decisions. It tracks your investments daily, alerts you when adjustments are needed, and lets you rebalance with a single click. This way, your investment plan remains on course efficiently, effortlessly, and you continue to stay invested with confidence.

Approval no: 36655