The financial year is ending: Here is what you must do for your investments

Avoid triggering taxation during portfolio rebalancing by buying more of underperforming asset class

The beginning of a financial year is an ideal time to conduct the annual portfolio review. If you have a financial advisor, schedule a meeting with her. For those who don’t, here’s a detailed road map.

Equity market surge

Midcap and smallcap funds have surpassed their largecap peers over the past year. Debt funds have performed reasonably well in a high interest rate scenario. Gold exchange-traded funds (ETFs) have on average turned in double-digit return. Many investors may find that their portfolios have become overweight on equities, especially on midcap and smallcap funds. This skew must be corrected through rebalancing.

Why and how