PORTFOLIO REVIEW, REBALANCING

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PORTFOLIO REVIEW, REBALANCING

Home / PORTFOLIO REVIEW, REBALANCING

What’s a portfolio review?

During a portfolio review, you sit down with another photographer or photo editor to talk about your work. Beforehand, you decide what you want to present and compile it into a portfolio. In the past, this used to be a physical folder of printed images, but these days it can also be a digital collection or even a social media profile.

Why is it so important?

Having a portfolio review means getting a professional’s opinion on your work. You get to lay out what you’re shooting, and how you do it and talk about how your current approach serves those goals. But more than discussing just individual pictures with you, a portfolio reviewer will look at the overall visual language of your work and how your photos work in context.

Photography has become incredibly accessible: Thanks to advanced digital cameras and smartphones, it’s become a lot easier to take a good photo. Because of that, it’s become more important than ever to contextualize your shots: To shoot in a way that lets them work together and to combine individual pictures for a greater visual effect. Reviewing your portfolio means considering all of your work together, and it can be an eye-opening experience—both to see how it is perceived and to put it together in the first place.

Why is Rebalancing important for you ?

The primary objective of portfolio rebalancing is to establish better risk control, and ensure that your portfolio isn’t singularly dependent on the success or failure of a particular investment, asset class, or fund type.

How can rebalancing help you as an investor?

Rebalancing works as a risk-minimizing strategy for you as an investor. It allows you to line up your investment with your goals by periodically rebalancing your portfolio. If your risk tolerance or your investment strategies change, then you can rebalance the weight of the asset class in your portfolio by reassessing and devising a new asset allocation.

How can you rebalance your portfolio?

When you invest in mutual funds, you are investing to achieve a single goal via various vehicles. So when you rebalance, the shift must occur across all of these funds at the same time.

Here’s how you can rebalance your portfolio in 5 simple steps:

Step 1: Primarily, have an asset allocation plan by considering your income, the expected time of retirement, and so on. Create an asset allocation framework, but if you are unsure speak to an expert – Safe Assets can be of help here.

Step 2: Assess your current asset allocation by identifying where and how your current investments are placed in stocks, cash, bonds, or any other form of investment. After this, make a comparative analysis of the asset allocation target and its present state and make adjustments accordingly.

Step 3: Chart out a rebalancing plan is your asset allocation target does not align with your current portfolio. This step can be tricky where you have to decide on the securities to retain and in what numbers. Speak to our experts at Safe Asset to get clarity.

Step 4: Be mindful of the tax implications, especially on capital gains. Avoid the short-term taxes on capital gains by holding on to your equities for over a year. In the case of debt funds, the short-term capital gains will qualify for taxes based on the individuals’ income tax slab. For long-term capital gains, the tax is 20% with indexation. If you need to scale back, aim to sell the securities in the tax-exempt accounts first. In this way, you can limit the taxes you pay in capital gains.

Step 5: Review your portfolio at least once a year or maybe once in six months to assess your position but rebalance it only when you feel that the allocations are significant out of the track to reaching the target.