tjh290633 wrote:kdtoal wrote:If I am to drip feed into the portfolio every month, say £1500/month, after the initial lump sum investment (£30-40K).
Am I best to rebalance every month by transferring money into each asset to balance or transfer in to each asset based on the % allocation and rebalance once a year only?
If you are topping up each month, then you can correct any imbalances then. It is best to allow some leeway in your nominal percentages, as they will always vary to some extent. You may find that a band of +/-25% of the nominal figure is a good practical tolerance at the outset. Presumably you would top up sectors sequentially, one or two each month. Then topping up by say 20% would keep you within range. You need to avoid too much rebalancing unless it gets radically out of kilter.
TJH
Thanks TJH,
Will keep this in mind and try and not rebalance too much.