Portfolio Rebalancing Simulator

Portfolio rebalancing refers to the realignment of the asset allocation of a portfolio (% in stock/equity, % in bonds/debt) back to the original asset allocation planned for the investment. This is done to control risk and  increase the potential for returns.

You can read more about this here:


I have developed a portfolio simulator to help in understanding how rebalancing can make a difference. There is no guarantee that it will result in better returns. However it does make a difference most of the time. You can use this calculator to find how when it is likely to make a difference.

The calculator contains the following sheets:

1. Notes about the calculation procedure.

2. Rebalancing illustration

3. Rebalancing SIP investments

4. Rebalancing lumpsum investments

5. Rebalancing a retirement portfolio to find out how long a corpus will last

6. Sample data and analysis

The calculator uses historical sensex returns for equity instruments and historical FD returns for debt instruments. You are free to change this to anything else you like.

Give this try and learn more about the benefits of rebalancing.

Download the Portfolio Rebalancing Simulator


Register for the New Delhi DIY Investor meet:  April 23rd 2017

Get free, yet comprehensive calculators, tools and analysis delivered to your mailbox! Subscribe to get posts via email

Your subscription is successful if you are directed to the "Welcome Page"

Install Financial Freedom App! (Google Play Store)

Install Freefincal Retirement Planner App! (Google Play Store)


Buy our New Book!

You Can Be Rich With Goal-based Investing A book by  P V Subramanyam (subramoney.com) & M Pattabiraman. Read more about the book and pre-order now!
Practical advice + calculators for you to develop personalised investment solutions

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete  the entire comment or remove the links before approving them.

5 thoughts on “Portfolio Rebalancing Simulator

  1. Hari

    Dear sir,
    Is it necessary to build the portfolio with only Bond funds [ i mean the debt part of the portfolio] ?
    I am stuck in deciding as to which debt fund to consider for setting up a portfolio.
    Appreciate your guidance in this regard.

  2. Lalit Gandhi

    Hi Pattu,
    Is there any calculator for rebalancing wherein the asset allocation will depend on how far or closer we are to the goal? All the rebalancing calculators I found have a constant asset allocation for the entire period of accumulation.
    For goals like retirement, which can be say 30 years away, the asset allocation will be higher on equity side..say 80:20 in the initial years and will change gradually to 10:90 when there are 2-3 years or less left for the goal.
    I could not find a calculator for this scenario... so demanding that from you 🙂



Do let us know what you think about the article