Portfolio a alokace
Q3 Portfolio Review: Check Your Allocation and Rebalance Through New Contributions
Key takeaways
- A quarterly review is sufficient for a passive investor — more frequent checking is counterproductive.
- Compare actual allocation with the target; if the gap does not exceed 5 percentage points, no action is needed.
- Rebalancing through new contributions is more tax-efficient than selling appreciated positions.
- Record performance against the benchmark; if a fund persistently lags, consider switching.
- Check fees, DCA settings, and any pending corporate actions.
A quarterly portfolio review is not about reacting to market events — it is a calm check to confirm the portfolio still matches your plan.
What exactly to check: a 5-point list
- Actual vs. target allocation: calculate the percentage weights of each asset. If equities have shifted from a target 80% to 85%, it is time to rebalance.
- Performance vs. benchmark: compare the fund's return for the quarter and the year with the relevant index — this reveals tracking difference.
- DCA settings: are all orders active? Does the contribution amount match your current income?
- Broker fees: has the broker changed its pricing? Have any unnecessary inactivity fees arisen?
- Life situation: has your horizon, income, or plan changed? If so, a broader allocation review may be warranted.
Rebalancing: sell vs. buy more
The most common dilemma: should you sell the overweight asset class, or is it enough to redirect new contributions? For most investors, rebalancing through new contributions is more advantageous:
- No taxable event is triggered (no realised gain).
- Full market exposure is maintained — investment time is not reduced.
- You are buying into the underweight class, which is currently priced relatively lower.
If new contributions would not be enough to restore the allocation (a large deviation or a large portfolio), selling the appreciated portion is justified — especially if you have satisfied the three-year holding-period test and the capital gains tax is zero.
Q3 context: summer as a natural pause
The third quarter is an ideal time for a review: half the year has passed, H1 corporate results are available, and you have an overview of annual income for any optimisations. The output of the review should be a simple note: "Allocation on track / rebalancing X CZK through the next contribution" — and nothing more.
FAQ
How often should I rebalance my portfolio?
For a passive investor, once a quarter or when the allocation deviates by more than 5 percentage points is sufficient. Rebalancing too frequently increases transaction costs and reduces returns.
Is it better to rebalance by selling or by buying more?
For most investors it is more advantageous to redirect new contributions to the underweight asset class. No taxable gain is realised and the portfolio stays fully invested. Selling is appropriate for large deviations or after the holding-period test has been met.
What is the holding-period test in the Czech Republic and how does it affect rebalancing?
In the Czech Republic, income from selling securities held for more than 3 years is exempt from tax (subject to additional conditions). Rebalancing by selling is therefore most advantageous after that test has been satisfied.