During a rebalance order, some transactions are also suggested in some stocks along with the manufacturer's buy/sell suggestions. This is done to match the model portfolio weightage (there could be some minor deviation in weightage due to price hike/fall).

 

To ensure that clients are not incurring unnecessary transaction charges that may arise from rebalance orders and which eat up their profit, the below checks have been added

• Orders where the buy or sell value for a stock is less than 1% of the basket net worth or less than ₹500, the stock is ignored from the rebalance order
• These checks are only implemented for stocks which are already a part of your holdings i.e., checks are not applied for fresh buy orders or complete sell orders
• The check is not applicable when you customize your rebalance order

 

Eg.:

• Let’s say the current Equity Basket net worth is ₹8000, post rebalance the updated net worth will be ₹10,000
• If the buy or sell order generated for any stock is less than ₹100 (1% of ₹10,000) this order will be ignored until and unless that is a complete sell or a fresh buy.

 

The above checks will ensure that invested clients are not incurring unnecessary transactions charges in rebalance orders and at the same time maintaining the Equity Basket investment strategy prescribed by the manager