💼 Portfolio — Rebalance Tab

3 Modes · Target Weights · STCG Warning · Action Plan · Premium Feature

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Published: April 19, 2026  |  6 min read  |  Platform Guide  |  Portfolio  |  Premium

Multimedia Learning Hub

Know exactly what to buy and sell today to bring your portfolio back to target weights

What You Will Master

The Rebalance tab is a Premium feature that computes an exact action plan — which stocks to buy, which to sell, in what quantities, at what amounts — to bring your portfolio back to your target weight allocation. It offers three modes for different capital scenarios, warns you about STCG tax on short-term lots before you sell, and shows only stocks that have drifted beyond a configurable threshold.

What This Guide Covers:

  1. What the Rebalance tab does and how it differs from the Backtest simulation
  2. Setting target weights via the Edit Targets modal
  3. The 3 rebalancing modes — Deploy Cash, Sell to Buy, Both
  4. Threshold and cash parameters
  5. Reading the action plan — all 8 columns including Drift and Action
  6. The STCG ⚠ warning — what it means and how to use it

Who This Is For:

  • Active allocators — investors who maintain a target-weight portfolio construction discipline
  • Tax-conscious sellers — investors who want to know which sells trigger STCG before acting
  • SIP deployers — investors with monthly fresh capital who want to direct it to underweight stocks automatically
What is the difference between Rebalance and Backtest?
Backtest is a historical simulation — it shows what would have happened if you had rebalanced in the past. Rebalance is a live action tool — it shows what to do today, right now, to bring your current portfolio to target weights using live prices. Backtest informs strategy; Rebalance executes it.
When should you use Deploy Cash vs Sell to Buy?
Deploy Cash: you have fresh money to invest and want to direct it to underweight stocks only — no selling required. Sell to Buy: you have no fresh capital but want to rebalance — overweight positions are sold and proceeds fund underweight buys. Both: deploy fresh cash first, then sell overweight to cover any remaining gap. Choose based on whether you have idle cash to deploy.
What does the Threshold % control in Rebalance?
Only stocks that have drifted more than the threshold percentage points from their target weight appear as BUY or SELL in the action plan. A stock with a 10% target at 13.2% actual is +3.2 points of drift — at the default 5% threshold, it would show as Hold, not Sell. Raise the threshold to reduce noise; lower it for tighter weight control.
What does the ⚠ STCG flag mean on a SELL row?
The ⚠ STCG flag means your earliest recorded purchase lot of that stock was less than 12 months ago. Selling it now would trigger Short-Term Capital Gains tax at 20.8% (vs LTCG at 13% for lots held over 12 months). The flag is a reminder to consider waiting until the lot crosses the 12-month mark — but it is your decision, not an automatic block.
How do you set target weights?
Click ⚙ Edit Targets. A modal opens showing each holding with Current % and a Target % input. Enter your ideal allocation for each stock — the total must sum to 100%. You can click ↺ Equal Weight to reset to an even distribution across all holdings. Click Save when done. Target weights persist across sessions.
Why are quantities shown as approximate?
The action plan computes whole-share quantities using the live LTP at the moment you click Compute Rebalance. Since you cannot buy fractional shares on Indian exchanges, the quantity is rounded to the nearest whole number — which creates a small residual gap. Prices also move between when you compute and when you actually place orders. Always verify quantities before trading.
What does the Drift column show?
Drift = Current % − Target %. A positive drift (e.g. +6.2%) means this stock is overweight — it has grown beyond its target and may need trimming. A negative drift (e.g. −4.8%) means it is underweight — you are below target and may need to add more. Only stocks with |Drift| > threshold appear as BUY or SELL; others show as Hold.
Does the Rebalance tab place orders automatically?
No. The Rebalance tab computes and displays an action plan — it does not connect to any broker or execute trades. You must read the recommended quantities and amounts, then manually place the orders through your broker's platform. The plan is a calculation output, not an automated order system.

What the Rebalance Tab Does

The Rebalance tab is a Premium feature that generates a live action plan — what to buy, what to sell, in what quantities — to move your portfolio from its current weight distribution to your defined target weights. It uses live LTP prices and your recorded trade history.

Rebalance = "what to do today." Backtest = "what would have happened." The Backtest tab is a historical simulation. The Rebalance tab is a live calculator that tells you the specific trades needed right now to restore your target allocation.

Non-premium users see a paywall with an upgrade link. Once upgraded, the full configuration panel and action plan are accessible.

Setting Target Weights

Target weights define your ideal portfolio allocation — the percentage you want each holding to represent of your total portfolio value. Click ⚙ Edit Targets to open the weight editor modal.

The modal shows a table with three columns:

The running total at the top right shows how close you are to 100%. The plan computes correctly only when the total is exactly 100%.

Total: 100.0% ✓ Total: 97.5% — add 2.5% more Total: 103.2% — reduce by 3.2%

↺ Equal Weight

The ↺ Equal Weight button distributes 100% evenly across all holdings — for example, 5% each for a 20-stock portfolio. Use this as a starting point if you want to test equal-weight rebalancing, then manually adjust individual stocks up or down from there.

Target weights persist. Once saved, your targets are stored and pre-filled each time you open the Rebalance tab. You only need to update them when your investment thesis or portfolio construction rules change.

The 3 Rebalancing Modes

Mode How It Works Requires New Cash? Best Use Case
Deploy Cash Allocates new cash to underweight stocks only. No selling. Yes Monthly SIP or fresh capital deployment — direct it to your most underweight positions
Sell to Buy Sells overweight stocks, uses proceeds to buy underweight stocks. No new cash needed. No Portfolio has drifted significantly and you want to rebalance without adding more money
Both Deploys new cash first to underweight stocks, then sells overweight to cover any remaining gap. Yes (partial) Fresh capital available but not enough to fully close all gaps — selling covers the rest

Deploy Cash — How It Calculates

With Deploy Cash selected, enter your cash amount in the Cash to Deploy (₹) field. The plan distributes this amount across underweight stocks proportional to how far each is below its target weight — the most underweight stock receives the largest allocation of the new cash.

Sell to Buy — The Tax Implication

Sell to Buy triggers actual sell orders for overweight positions. This is where the STCG ⚠ warning becomes most important — check it before confirming any sells. See Section 5 below.

Sell to Buy does not account for STT or brokerage on the sell side. The proceeds used to fund buys are the gross sell amount — actual net proceeds after STT and brokerage will be slightly lower, meaning the buy quantities will be marginally smaller than shown. Always verify before placing orders.

Reading the Action Plan

After clicking ⚡ Compute Rebalance, the Rebalance Action Plan table appears. Each row represents one holding:

Stock Current Value Current % Target % Drift Action Qty Amount
TITAN ₹4,20,000 18.3% 10.0% +8.3% SELL 58 ₹1,90,000
LALPATHLAB ₹60,000 2.6% 8.0% −5.4% BUY 25 ₹1,26,000
HDFCBANK ₹2,28,000 9.9% 10.0% −0.1% Hold — —

Column Definitions

The Summary below the table shows total cash to deploy, total proceeds from sells, and the net cash flow of the rebalancing operation.

Stocks within the threshold show as Hold with no action required. HDFCBANK in the example above is only 0.1 points below target — far inside the 5% threshold. It needs no action. This keeps the plan focused on material imbalances, not noise.

The STCG ⚠ Warning

Any SELL row where your earliest recorded purchase lot of that stock was bought less than 12 months ago displays a ⚠ STCG flag. This indicates the sale would trigger Short-Term Capital Gains tax.

Holding Period Tax Category Rate (post-July 2024) Annual Exemption
Held < 12 months Short-Term Capital Gains (STCG) 20.8% None
Held ≥ 12 months Long-Term Capital Gains (LTCG) 13% ₹1.25 lakh per year

What to Do When You See ⚠ STCG

The ⚠ STCG flag is indicative, not precise. It is based on the earliest recorded purchase date for the stock as a whole — not a FIFO lot-by-lot analysis. Actual tax liability depends on which specific lots your broker sells (FIFO/HIFO), exact holding periods per lot, and prevailing tax rates. Consult a qualified CA before acting on any sell that shows this flag.

Recommended Rebalancing Workflow

Step 1 — Set targets once, revisit quarterly

Open Edit Targets and enter your target weights. Unless your investment thesis has fundamentally changed, these weights should stay stable for months. Rebalancing is about drift correction — not about changing your strategy every time you run the tool.

Step 2 — Choose mode based on capital availability

If monthly SIP funds are ready, use Deploy Cash and enter the amount. If no fresh capital is available, use Sell to Buy. Start with a generous threshold (7–10%) so the plan shows only material drifts, not every minor fluctuation.

Step 3 — Scan SELL rows for ⚠ STCG flags first

Before doing anything else in the plan, look at every SELL row for the ⚠ STCG flag. For any flagged sells, check how far the lot is from the 12-month mark. If less than 3 months away, deferring is usually worth it — the tax saving (7.8% on the gain) is substantial.

Step 4 — Execute through your broker

Use the Qty and Amount columns as your order reference. Place sell orders first to generate proceeds, then place buy orders. Verify quantities at the time of order placement — LTP moves between when you compute and when you trade.

Step 5 — Re-run after execution

After your trades settle, open the Rebalance tab again and compute a fresh plan. The post-trade weights should now be close to targets. Any residual drift (from rounded quantities) is expected and will be corrected in the next rebalancing cycle.

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