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Asked a question 3 years ago

How often are themes rebalanced?

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Hey Janki

The themes are reviewed on a regular basis. Usually, we rebalance themes on a quarterly basis but it is not compulsory, as we could prepone the rebalancing schedule or postpone it depending on the performance of stocks and the market condition. 

Hi Janki, under FYERS Thematic, guidelines suggest that all the themes be balanced at the end of each quarter, based on the quarterly results, news updates and any regulatory changes. However, it is not mandatory to rebalance/remove a stock if variation seems within a range or if the themes have been impacted by general market condition (like the market crash of March 2020) or if there is any one-off impact due to any temporary shift in business environment.

Each stock from each theme is reviewed against a large set of parameters - qualitative and quantitative - before making any changes.