Rebalancing needed or not
I have a duration of 7 years in which I want my lump-sum amount of around 20 lakhs to achieve best results as possible.
I am not very aggressive and have chosen an aggressive hybrid fund as my vehicle.
The fund is currently 70% equity and around 30% debt allocated.
The factsheet and most what I read suggest sticking with aggressive hybrid funds for 5-7yr time horizon.
My question should I just wait for 7 years and then see where the investment stands.
Or should I start rebalancing away from the fund after 2-2.5 yr periodically, reducing my equity exposure.
I ask this because aggressive hybrid funds already have some debt. If I started with 100% equitty, then it made sense to rebalance periodically, imo.
My other investment will be(hasn't started) retirement corpus, which is separate and not affected by this lumpsum amount.
ps: I say lumpsum but actually using an weekly sip to invest that amount.