Rebalancing
Portfolio rebalancing: you bought 10 stocks equally. The market changed the math.
RELIANCE went up 40%. Two others dropped 20%. You never made a single trade, but your equal-weight portfolio is now concentrated in one stock and one sector. Your broker shows green P&L. What it doesn't show is that your risk profile has completely changed.
The problem
Silent concentration drift
You check your portfolio for the first time in three months. What was an equal-weight portfolio of 10 stocks now looks nothing like what you built. RELIANCE is 28% of your holdings. Your energy sector exposure is 45%. Two stocks are down over 30% and still sitting there because you never set a stop-loss. Your broker shows a green P&L number at the top, so everything feels fine. But that green number hides the real story: your portfolio's risk profile has completely changed without you making a single trade. The market rebalanced your portfolio for you. It pushed your winners higher and let your losers drag. Now your Herfindahl index is through the roof, your concentration risk is severe, and one bad quarter for RELIANCE would wipe out months of gains. You know you should rebalance. But rebalancing means doing math across 10 positions, figuring out sector weights, deciding how much to trim, and checking if selling triggers tax consequences. So you don't. And the drift gets worse.
This is for you if
- You haven't checked your portfolio allocation in months and you're nervous about what you'll find
- One stock has quietly grown from 10% to 28% of your holdings, and you didn't notice until now
- You hold mutual funds and direct stocks that probably overlap, but you've never checked how much
- You suspect your IT sector exposure is north of 50% but your broker doesn't show sector weights
- You want to rebalance but you're afraid of selling your winners and locking in taxes on gains
- You keep reading about diversification but you have no way to measure if your portfolio actually is diversified
What you can do
See the drift. Plan the fix. Simulate before you act.
PortoAI's portfolio analyzer shows exactly where your portfolio has drifted, quantifies the risk, and lets you simulate every rebalancing move before you make it.
Portfolio health score
A single 0-100 score built from 5 weighted dimensions: Diversification (30%), Concentration Risk (25%), Sector Balance (20%), Loss Management (15%), and Cash Buffer (10%). You see one number that tells you how healthy your portfolio is, and you can drill into each dimension to understand exactly what's dragging the score down.
Concentration and risk flags
Automatic flags when any stock exceeds 20% (warning) or 30% (critical), when any sector crosses 40% or 60%, when a stock is down more than 30% from your buy price, when margin utilization exceeds 70% or 90%, or when your cash buffer drops below 2%. These are the thresholds where risk starts compounding silently.
HHI diversification tracking
Your Herfindahl-Hirschman Index, tracked over time. HHI measures how concentrated your portfolio really is, beyond just looking at individual stock weights. A portfolio with one stock at 30% is riskier than one with all stocks at 10%, and HHI captures that difference in a single number you can track week over week.
Trade impact simulator
Before you rebalance, simulate every trade. "What happens if I sell half my RELIANCE?" See the before-and-after on concentration percentage, sector weights, HHI, health score, and margin impact. You know exactly what each trade does to your portfolio before you place it.
Sector comparison vs NIFTY weights
See your sector allocation side by side with NIFTY 50 sector weights. Instantly spot where you're overweight or underweight relative to the benchmark. If your IT sector is at 35% and NIFTY's is at 14%, that's a deliberate bet, or a drift you didn't notice.
Loss management and cash buffer monitoring
Stocks down more than 30% from your buy price get flagged automatically. Positions that have been losing for months without a stop-loss are highlighted. Your cash buffer percentage is tracked against the 2% minimum threshold. These are the blind spots most brokers don't surface, and they matter most during corrections.
Try it yourself
Questions you can ask
“What's my portfolio health score right now?”
“Which stocks have crossed 20% concentration?”
“What happens to my health score if I sell half my RELIANCE?”
“Show my sector allocation compared to NIFTY 50 weights”
“Which of my stocks are down more than 30% from buy price?”
“What's my portfolio HHI and is it getting worse?”
“Do my mutual funds overlap with my direct stock holdings?”
“How much cash buffer do I have and is it enough?”
Ready to try these prompts with your own portfolio?
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Active investor · 47 stocks · Delhi
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