Keep Your Wealth Future-Ready with Portfolio Rebalancing

Your portfolio should evolve like your lifestyle.

Smart. Stylish. Future-ready. Just like your wardrobe, your portfolio needs regular updates to stay aligned with your goals.

Why Rebalancing Matters

Building wealth means curating a look that reflects your ambitions – just like assembling a wardrobe that fits your lifestyle.

• Your essentials: Stocks, bonds, and unit trusts. The timeless staples that fit your needs, profile and preferences.
• The statement pieces: Commodities, FX, or alternatives that add flair and opportunity.
• The reliable go-to for any situation: Cash.

But even the most curated wardrobe needs refreshing. Market movements can shift your portfolio’s balance without you noticing. And suddenly, you’re overexposed to one asset class, and it’s like owning too many white shirts and not enough weekend wear.

Portfolio rebalancing restores alignment with your goals and keeps risk in check. The other benefit: It helps prevent emotional decisions.

Why Rebalancing Matters for Growth and Risk Management

Take a very simplistic example. A strong rally can push a 50/50 split between stocks and bonds to 70/30. That’s riskier than intended, and you may experience larger swings in your portfolio value than what you expect.

Conversely, a market downturn could push the 50/50 split to 30/70. That’s too conservative, and you may miss out on potential recovery gains.

Rebalancing brings your portfolio back to target, so your investment strategy stays on track for financial freedom.

Risks of Not Rebalancing

Ignoring portfolio rebalancing can lead to:

1. Increased Volatility. Asset drift can make your portfolio more volatile than intended.
2. Misaligned Risk Profile. You may be exposed to more risk than your comfort zone allows.
3. Missed Opportunities. Neglecting to rebalance means missing chances to "buy low" in underperforming assets.
4. Failure to Meet Financial Goals. An unbalanced portfolio derail long-term financial objectives.
5. Reduced Diversification. One asset class might dominate, diminishing the benefits of diversification.

How CIO Expertise Elevates Your Portfolio

Think of the DBS Chief Investment Office (CIO) as your personal stylist for wealth, anticipating trends before they hit the runway.

Here’s how they help you stay ahead:

• Model Portfolios: Updated quarterly to reflect the DBS House View, so your allocation stays on course – whether you’ve got a Conservative, Moderate, or Aggressive risk profile.
• Rigorous Framework: Every model portfolio is grounded in fundamentals (e.g. growth, inflation), valuations (price-to-earnings, credit spreads), and momentum indicators (market catalysts, fund flows).
• Smart Delivery: With a Wealth Management Account, you get a recommended asset mix to customise a portfolio that works for you, and is in line with the DBS house view. And investment ideas that are relevant to your portfolio.

Using DBS Model Portfolios for a Fit Check

Practical Considerations About Rebalancing

How often should I rebalance?

Quarterly is a practical cadence and lines up with CIO model portfolio updates. Use threshold bands to react sooner if your asset allocation drifts materially from the original.

Won’t rebalancing reduce returns?

It may trim some upside during strong rallies, but it keeps risk aligned and helps you to stay invested through full market cycles. This is key to compounding toward financial freedom and can lead to more consistent risk-adjusted returns over time.

Where do CIO insights show up for me?

In your digibank app, and through your Relationship Manager who is prompted on relevant opportunities for your profile.

Within digibank:

• Launch your digibank app, and before you log in, simply swipe up to browse the latest insights.
• Research insights are also embedded in the online trading features for equities, funds and unit trusts.

Quick Wins to Keep Your Portfolio Future-Ready

1. Check Your Fit. Review your asset allocation quarterly; annually at the very least.
2. Apply the 5% Rule. Avoid concentration risk. No single stock or fund should dominate your portfolio.
3. Leverage CIO Insights. Use model portfolios as your guide to rebalance confidently. DBS Treasures.

Your Next Move

You’ve worked hard to build your wealth, now make sure it works just as hard for you.

Start a conversation with your DBS Treasures Relationship Manager today and unlock the full potential of CIO expertise.

Your portfolio deserves the same attention as your lifestyle: smart, stylish, and ready for what’s next.

If you’re new to us, leave your details and we’ll get back to you.

Get in touch

If you need help finding your Relationship Manager, your digibank app can help. Simply log-in, tap on the question mark icon at the top right, select “Your Relationship Manager”, and choose whether to call or email them.

Disclaimers and Important Notice
This article is for information only and should not be relied upon as financial advice. Any views, opinions or recommendation expressed in this article does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability. This article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.