Do you take profits from top performing funds

eskbanker

ZingPowZing said:

Perhaps I misunderstand "rebalancing."
I'm happy with the Investopedia definition but I do think rebalancing is synonymous with the performance of holdings in a portfolio. Rebalancing is only necessary when - as they must - relative performances diverge?

Your prerogative to use the word as you see fit, but I was just highlighting that if you're choosing to use it as a catch-all term encompassing performance-related changes (such as 'taking profits from top performing funds') then that's not its usual more precise and specific meaning (realignment to risk/allocation targets), so you're likely to find yourself at cross purposes with those using it in its normal sense.  As mentioned earlier, there will be overlap, in that portfolios will get out of alignment because of differential performance, but the purpose of rebalancing in that scenario is specifically to restore that alignment (with a defined target allocation) rather than simply to cash winners, etc....

schiff

george4064 said:

I tend to rebalance my ISA with new contributions, only on rare occasions do I partially sell down a security (share, IT or ETF) to re-invest in another holding to bring them closer to target allocations.

I've got three S&S ISAs from earlier years with three different providers. Am I right in believing that if I deposit new money on or after 6/4/21 into one of them, I can't add new money to either of the other two?

eskbanker

schiff said:

george4064 said:

I tend to rebalance my ISA with new contributions, only on rare occasions do I partially sell down a security (share, IT or ETF) to re-invest in another holding to bring them closer to target allocations.

I've got three S&S ISAs from earlier years with three different providers. Am I right in believing that if I deposit new money on or after 6/4/21 into one of them, I can't add new money to either of the other two?

Yes, you can only pay new money into one ISA of each type in any tax year.