How often and based on just deviation from initial Strategic Asset Allocation or some other market and geo-political factors? What is tolerance of the deviation maximum value in %? Reply
Rebalancing if time based is up to the investor as stated in the blog. Generally 1 year (plus a day to make capital gains long term) works well in most cases. Tolerance is really based on the investor’s preferences. A reasonable approach is a 5% drift, but it is so dependent on the volatility of the portfolio holdings and an investor’s tolerance for drift. Reply